SpringFit Corporation You are an accounting intern working for Spring Fit Corporation. You have recently been assigned to help one of the accountants wh year's journal entries, shown as follows: Journal Entries, Year 1 Journal Date Credit Debit 1,008,960 Jan. 1 Description Cash Premium on Bonds Payable Bonds Payable 58,960 950,000 18,427 Jun 30 Interest Expense Premium on Bonds Payable Cash 2,948 21,375 Jul. 1 Cash Discount on Bonds Payable Bonds Payable 1,729,164 70,836 1,800,000 Dec. 31 Interest Expense Premium on Bonds Payable Cash 18,427 2,948 21,375 31 37,403 Interest Expense Discount on Bonds Payable Cash 5,903 31,500 31 Retained Earnings Interest Expense 74,257 74,257 July 3. How much interest was paid during the year on the bonds in question (2)? $ 1,800,00 4. What is the carrying amount of the bonds in question (2) at the end of the year? 1,800,000 5. Which entry shows bonds that sold for more than their face amount? Choose the date. Jan. 1 6. How much interest was paid during the year on the bonds in question (5)? $ 950,000 x 7. Assuming that straight line amortization is used for the bonds in question (5), what is the bond life? 10 years 8. What is the carrying value of the bonds in question (5) at the end of the year? 58,960 x Check My Work 1. Review the journal entries carefully. 2. What type of bond has a contract rate lower than the prevailing market rate