T19-1 (similar to) Question Help At December 31, 2018, Northwest's bond accounts appear as follows: Click the icon to view the accounts.) Suppose Northwest Airlines issued $150,000 of 10%, five-year bonds when the market interest rate is 22%. The market price of the bonds drops, and Southwest receives $96,968 when the bonds are issued. The transaction was recorded as follows: (Click the icon to view the transaction.) Northwest's journal entries to record interest expense and amortize the bond discount the first year follows: (Click the icon to view the journal entries.) What would Northwest Airlines' 2018 income statement and year-end balance sheet report for these bonds? Begin by completing the income statement for 2018. Income Statement for 2018 Journal entries - X Transaction - X Date Debit Credit - X Journal Entry Accounts and Explanation Interest Expense Discount on Bonds Payable Accounts 2018 Date Debit Credit 10,666 2018 3,166 Jul 1 Journal Entry Accounts and Explanation Cash Discount on Bonds Payable Bonds Payable To issue bonds at a discount. 96,968 53,032 Cash 7,500 Jan 1 Bonds Payable Discount on Bonds Payable 150,000 150,000 53,032 3,166 11.015 To pay semiannual interest and amortize bond discount. Dec 31 Interest Expense Discount on Bonds Payable Interest Payable 3,515 3,515 7,500 Bal 46,351 Print Done To accrue semiannual interest and amortize bond discount Bond carrying amount, $103,649 = $150,000 - $46,351. Print Done Print Done Choose from any list or enter any number in the input fields and then click Check Answer. 1 pana Clear All Check Answer remaining