Question 8 Ivanhoe Ltd. sold Rs3,176,000, 6%, 10-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest annually on January 1. Ivanhoe Company uses the straight-line method to amortize bond premium or discount. Assume the country allows the use of straight line amortization for bond premiums and discounts. (a) Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2017, assuming that the bonds sold at 102. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2017 Dec. 31, 2017 (b) Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2017, assuming that the bonds sold at 98. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2017 Dec. 31, 2017 IVANHOE LTD. Statement of Financial Position Premium Rs IVANHOE LTD. Statement of Financial Position Discount Rs