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Question #2 (45 marks) This question consists of 2 independent sub-questions 1. 25 marks On January 1, 2019, Lissome Corp. issued $900,000 of 20-year, 11%

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Question #2 (45 marks) This question consists of 2 independent sub-questions 1. 25 marks On January 1, 2019, Lissome Corp. issued $900,000 of 20-year, 11% bonds for $832,290, yielding a market (discount, yield) rate of 12%. Interest is payable semi-annually on June 30 and December 31. Required: a. Prepare journal entries to record the bond issuance. Prepare the 3-column amortization table for 4 periods. b. Prepare journal entries to record the semi-annual interest payment and discount amortization on (1) June 30, 2019 and (ii) December 31, 2019. c. Lissome elected to report the bonds in its financial statements at fair market 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? d. Determine the income statement effects of (b) and (c) for 2019. That is, the interest expense and any unrealized gain/loss

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