Section Time: 11:00-12:20 Day TR Serial #: Question 1 (8 points) Bonds payables filen sache Trust Corporation decided to issue $ 2,000,000 face value bonds, on January 1, 2018. The stated interest rate on the bonds is 4%, and interest is paid annually, on December 31 of every year. Bonds mature on January 1, 2022. On the date of issuance, the market rate of return way 6%. n-u The following interest factors are provided: Interest Rate able Factors for Four Periods 4% 6% Future Value of Single Sum 1.16986 1.26248 Present Value of Single Sum 0.85480 0.79209 Future Value of Ordinary Annuity of 1 4.24646 4.37462 Present Value of Ordinary Annuity of 1 3.62990 3.46511 2000,000 X 0. 70209 1,584,180 Reut = 80oo0 - 217, 208.8 ( 166 1 388.8 1 Required 1) Prepare the issuance entry of the bonds on January, 2018. (3 points) Debit Credit Account Brands Payalton Cash 1,861,388.8 (prois court, en Bonds payable /138, 64. 2 cr. Bondo pasalate 200,000 2) Fill the required amounts in the following table: (3 points) 6/. Date Carrying Value of Bonds Cash Paid Interest Expense mortized Discount S 1,861,3888 Jan. 1. 2018 $ Dec 31, 2018 S 30 Dec 31, 2019 Soooo 11, 683 1112584 31, 683 33,584 1,893,072 1,92 6,656 3) Prepare the payment of interest and the related amortization on December 31, 2018. (3 points) Account Debit Credit 16683 (3 or Inhereat expense cr. Cash cr. Discounter Bond $1,000 31,683 2