Score: 0 of 1.pt 10 of 10 (0 completo) HW Score: 0%, 0 of 10 pts T19-1 (similar to) Question Help Suppose Southern Airlines issued $140,000 of 10%, five-year bonds when the At December 31, 2018, Southern's bond accounts appear as follows: market interest rate is 20%. The market price (Click the icon to view the accounts.) of the bonds drops, and Southwest receives $97,055 when the bonds are issued. The transaction recorded as follows: What would Southern Airlines 2018 income statement and year-end balance Click the icon to view the transaction) shoet report for these bonds? Southere's journal entries to record interest expense and amortize the bond discount in the first year follows Click the icon to view the journal entries.) Begin by completing the income statement for 2018. Income Statement for 2018 Transaction Journal Entry Date Accounts and Explanation Debit Credit 2018 Cash 97,055 42,945 Jan 1 Discount on Bonds Payable Bonds Payable To issue bonds at a discount. 140,000 Print Done Journal entries Debit Credit 9,706 2,706 7,000 Journal Entry Date Accounts and Explanation 2018 Interest Expense Jul 1 Discount on Bonds Payable Cash To pay semiannual interest and amortize bond discount. Dec 31 Interest Expense Discount on Bonds Payable Interest Payable To accrue semiannual interest and amortize bond discount 9,976 2,976 7,000 Print Done i Accounts X 1 Bonds Payable Discount on Bonds Payable 140,000 42,945 2,706 2,976 Bal 37,263 Bond carrying amount, $102,737 = $140,000 - $37.263. Print Done