Take me to the text On May 1, 2020, Ezzy Corporation issued a 6-year bond worth $360,000 with an interest rate of 7% per annum. Interest is to be paid semi-annually on October 31 and April 30. At the time of the issuance, the market interest rate was 12%. Ezzy Corporation amortizes any premium or discount using the effective interest method. Calculate the bond issue price and the resulting premium or discount. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. For transactions with more than one debit or credit, enter the accounts in alphabetical order. For bond calculations, use the PV tables in Chapter 7 of the textbook or use a financial calculator. Bond Issue Price: $ 284545 Premium or Discount: $ 75455 b) Prepare journal entries to record the following bonds payable transactions. 1) Issuance of bonds on May 1, 2020. Date Account Title and Explanation Debit Credit May 1 Cash 284545 Discount on Bonds Payable 75455 . 360000 Bonds Payable To record bond issuance 2) Payment of interest and amortization of premium or discount on October 31, 2020. Date Account Title and Explanation Debit Oct 31 Interest Expense 17073 Credit Cash 12600 Discount on Bonds Payable 4473 To record first payment of interest and amortization 3) Accrual of interest and amortization of premium or discount on December 31, 2020, which is the company's year-end. Date Account Title and Explanation Debit Credit Dec 31 Interest Expense . 5780 Discount on Bonds Payable 1580 4200 Interest Payable To record the interest accrued on bonds payable 4) Payment of interest and amortization of premium or discount on April 30, 2021. Date Account Title and Explanation Debit Apr 30 Interest Expense 11561 Credit Interest Payable 4200 Cash 12600 3161 Discount on Bonds Payable To record payment of interest and amortization 5) Redemption of the bond for its face value one year before maturity on May 1. Date Account Title and Explanation Debit Credit May 1 Bonds Payable 360000 Cash X Discount on Bonds Payable Redemption of bond Check