Question 2 (12 marks) Leonard Inc. is a newer company and needed to raise some funding by issuing some bonds. Leonard issued bonds with the following details: Face value $150,000 Stated interest rate 5% Market interest rate 9% Maturity date January 1, 2023. Date of issuance January 1, 2020 Call price 103 Interest payments are due annually on January 1 Method of amortization is effective interest Required: (a) Calculate the amount of issuance premium or discount. (b) Prepare the journal entry for issuance of the bonds. (c) Prepare the amortization schedule for the bonds. (d) Prepare all of the journal entries that relate to these bonds (subsequent to the issuance date) for 2020 and 2021. Assume the accounting period coincides with the calendar year. Assume reversing entries are not used. (e) Prepare the journal entry to record retirement of the bonds assuming they are called on January 1, 2022. (f) List at least four (4) qualitative factors considered in determining the riskiness of long-term debt? Question 3 (7 marks) Fortunately, learners and shareholders believe in Leonard Inc. and the company would like to issue dividends. Leonard Inc. has $150,000, $1.00, no par value preferred shares (50,000 shares) and $600,000 of no-par value common shares outstanding (120,000 shares). No dividends have been paid or declared during 2018 and 2019. As of December 31, 2020, the company wishes to distribute $600,000 in dividends. Required: How much will the preferred and common shareholders receive under each of the following independent assumptions? a) The preferred is noncumulative and nonparticipating. b) The preferred is cumulative and nonparticipating. The preferred is cumulative and fully participating