Question 5 Vaughn Company issued 396,000 of 5-year, 10% bonds at 96 on January 1, 2017. The bonds pay interest annually. Your answer is partially correct. Try again. (1) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically inden Account Titles and Explanation Debit Credit 1 Cash 396,000 Bonds Payable 396,000 (2) Compute the total cost of borrowing for these bonds. Total cost of borrowing Your answer is partially correct. Try again. (1) Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 105. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Cash 415800 Bonds Payable 415800 (2) Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 105. Total cost of borrowing 118800