Question 7 (10 marks) On January 1, 2018, Schooland Ltd. issued $800,000 of five-year, 7% bonds to yield a market interest rate of 6%. Interest is paid semi-annually on January 1 and July 1. Instructions: Round all amounts to the nearest whole dollar. Calculate the issue price of the bonds. Prepare the entries to record: (1) Jan 1, 2018 - the issue of the bonds on January 1, 2018; (2) Jul 1, 2018 - the payment of interest and amortization of any bond discount or premium on July 1, 2018; (3) Dec 31, 2018 - the accrual of interest on December 31, 2018, which is Scholander's year end; (4) Jan 1, 2019 - the payment of interest on January 1, 2019; (5) Jan 1, 2023 - the final journal entry that would be made after the last payment of interest when the bonds mature on this date