questions 1- _ Please use the following information to answer In August 2016, Microsalt Inc. sold $19.75 bilion bonds to partialy fund its acquisition of Linkedin Corp ($282 billon). In January 2017, Microsoft Inc. Issued another $17 bilion in bonds (see the table below). Since most credit rating agencies rated Microsoft's credit as AAA, bond interest managed to be very favorable (the better the credit raing, the smaler interest rates the company could enjoy). Proceeds from the seven-part deal ware expected to be used for general corporate purposes, Includling stock buybacks and refinancing (the repayment of short-term debt used to help fund Microsoft's acquisition of Linkedin Corp). Billion Interest Due date Maturity 85% -2020 3 years 175 240% -2022 5years 2.25 20%- 2875% 3.30% 2027 10years 410% 2007 20year 425% . 047 30 years 450% -2057-40 years 2024 . Total 17 billion Emotive: 3.45% 1. (1 point) Wha jounal entry did Microsoft make when it issued $17 billion in bonds (gnore underwriting fees Stockholders Equity RavenueExpenseNet Income Cash Prepaid FA-Financing actvity 2. (1 point) How was the accounting equation impacted by the bond issuance? a. Assets increased, labilities increased, equity increased b Assets increased, labilities increased, equity decreased c. Assets increased, liabilities increased, equity una ected d. Assers decreased, labilities increased, equity unafected 3. (1 point) The eflective interest rate for the bond's issuance in January 2017 was 3.45% How much willit coat Microsoft to serve ts new debt annualy? (Put dfferenfy, what is the interest expense related to the mentioned bond issuance? $59 mln b $5525 miion $586 5 million d $5.9 billion 4 (0.5 point) What is the reason Microsoft issued bonds instead of borrowing money from the bank? You may find this summary FS F7 F8 F9 4 9