Question 5 (8 marks) On January 1, 2021 XYZ Corporation issued five-year $1,000,000, 7%. The bond was issued at $1,050,000. Interest is paid annually on December 31. The market rate of interest is 6%. (8 marks) Required: a) Prepare the journal entry to record the issuance of the bond at January 1, 2021. Date 1/1/21 Account Debit Credit b) Using the effective interest rate method, prepare the journal entry to recognize the interest expense al December 31, 2021. Date 12/31/21 Account Debit Credit e) What is the carrying value of the bond at December 31, 2021 and January 1, 2026 (the maturity date)? December 31, 2021, Carrying Value - $ January 1, 2026, Carrying Value - $ Page 7 of 14 2781 words Qx Focus 100%