Question 1 Partially correct Mark 55.00 out of 62.00 P Flag question Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1, 2019, Trueman Corp. issued $600,000 of 20-year, 11% bonds for $554,860, yielding a market (yield) rate of 12%. Interest is payable semiannually on June 30 and December 31. Required a. Confirm the bond issue price. b. Prepare journal entries to record the bond issuance, semiannual interest payment and discount amortization on June 30, 2019, and semiannual interest payment and discount amortization on December 31, 2019. Use the effective interest rate method. c. Post the journal entries from part b to their respective T-accounts. d. Trueman elected to report these bonds in its financial statements at fair value. On December 31, 2019, these bonds were listed in the bond market at a price of 101 (or 101% of par value). What entry is required to adjust the reported value of these bonds to fair value? e. Prepare a table summarizing the effect of these bonds on earnings for 2019. Confirm Bond Price Journal entries T-accounts Fair Value Entry/Earnings Table Debit Date Description 12/31/2019 Unrealized loss Fair value adjustment Credit 0 51,140 x 0 51,140 x $ OX OX Coupon payments Discount amortization Total interest expense Fair value adjustment Total effect on income (deduction) OX OX 0X Check