Sub-part 1: Assume Bentley Incorporated is planning to issue bonds with a face value of $700,000 and a coupon rate of 6 percent. The bonds mature in six years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. (Use the appropriate factor(s) from the tables provided in your textbook. Round your final answer to a whole dollar.) Required: Determine the issuance price of the bonds assuming: 1. An annual market rate of interest of 8 percent 2. An annual market rate of interest of 4 percent Sub-part 2: Avalon Inc. is planning to issue bonds with a face value of $300,000 and a coupon rate of 5 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. The bonds were sold on January 1 of 2020. Avalon Inc. uses the effective-interest amortization method and uses premium and discount accounts. Assume an annual market rate of interest of 7 percent. (Use the appropriate factor(s) from the tables provided in your textbook. Round your final answers to whole dollars.) Required: 1. Calculate the issuance price of the bands: 2. What bonds payable amount will Avalon Inc. report on its June 30, 2020 balance sheet? 3. Prepare the journal entries to record the issuance of the bonds and interest payment on June 30 and December 31, 2020 of this year. 4. Prepare the journal entry assuming Avalon Inc. repurchased (retired) the bonds on January 1, 2021 for $290,000. PART 3: Statement of Cash Flows ARCO Chemical Company is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative condensed balance sheets are summarized below: Balance Sheet Current Year Prior Year Cash $ $1,000 5 43.500 Accounts receivable 52,500 42,000 Merchandise inventory 61,500 57,000 Property and equipment 181,500 150,000 Less: Accumulated depreciation (45,000) (37,500) Total Assets $ 301,500 $255,000