Question 4 (20 marks) The following are data taken from the records of Durand SpA. Debit Balances Cash Current assets other than cash Long-term investments Plant assets December 31, 2020 $ 15,000 85,000 10,000 335,000 $445,000 December 31, 2019 $ 10,000 58.000 53,000 215,000 $336,000 Credit Balances Accumulated depreciation Current liabilities Bonds payable Share capital ordinary Retained earnings $ 40,000 22,000 $ 20,000 40,000 75,000 254,000 56,000 $445,000 254,000 20,000 $336,000 Additional information: 1. Held-for-collection investments carried at a cost of $43,000 on December 31, 2019, were sold in 2020 for $34,000. The loss was incorrectly charged directly to Retained Earnings. 2. Plant assets that cost $60,000 and were 80% depreciated were sold during 2020 for $8,000. The loss was incorrectly charged directly to Retained Earnings. 3. Net income as reported on the income statement for the year was $59,000. 4. Dividends paid amounted to $10,000. 5. Depreciation recorded for the year was $28,000. Required: Prepare a statement of cash flows for the year 2020 using the indirect method. Question 3 (15 marks) On January 1, 2019, Osborn plc sold 12% beads having a maturity value of 800,000 for 860,651.79, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2019, and mature January 1, 2024, with interest payable December 31 of each year. Required: (a) Prepare the journal entry at the date of the bond issuance. (b) Prepare a schedule of interest expense and bond amortization for 2019 - 2021. (c) Prepare the journal entry to record the interest payment and the amortization for 2019. (d) Prepare the journal entry to record the interest payment and the amortization for 2020. (e) Prepare the journal entry to record the interest payment and the amortization for 2021