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. Your answer is partially correct. Try again. (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 Cash x x X Dec. 31, 2017 x x (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 Date Account Titles and Explanation Debit Credit Jan. 1, 2017 X! x Dec. 31, 2017 XP x x X Show the statement of financial position presentation for the bonds at December 31, 2017, for both the requirements in (a) and (b). IVANHOE LTD. Statement of Financial Position December 31, 2017 Premium Current Liabilities Interest Payable 190560 Rs! Non-current Liabilities Bonds Payable 3176000 IVANHOE LTD. Statement of Financial Position December 31, 2017 Discount Current Liabilities Interest Payable 190560 Rs X Non-current Liabilities x X Bonds Payable 3176000