Question 5 Vaughn Company issued 396,000 of 5-year, 10% bonds at 96 on January 1, 2017. The bonds pay interest annually (1) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically inde Account Titles and Explanation Debit Credit (2) Compute the total cost of borrowing for these bonds. Total cost of borrowing (1) Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 105. (Credit Account Titles and Explanation Debit Credit (2) Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 105. Total cost of borrowing