The accountant of HKUST Inc. forgot to record the following bond transaction. Please help this accountant re-create the balance sheet, income statement, and cash flow statement with the following transaction. The balance sheet, income statement, and cash flow statement are presented below (17 pts)

HKUST Inc. issued a bond on January 1^st, 2019 with a market interest rate (yield) of 11%. However, HKUST Inc. decided to pay a coupon rate of 9%. The face-value of the bond was 10,000 dollars. This bond will be due on December, 31^st, 2020 and will be paid semi-annually.

a) Only re-create the statements in the supplement as of December 31^st, 2019. Journal entries give partial credit. HKUST Inc. uses the effective interest method. (use the pages below)

b) Re-do the journal entry on June 30^th, 2019 if HKUST Inc. used the straight-line method for bond amortization. (3 points)

c) How much is the difference in cash provided by operations using the effective interest method vs. the straight-line amortization method on December 31^st, 2019? (2 points)

Balance Sheet as of December 31st, 2019 Updated version 88,160 Cash Accounts Receivable Prepaid Expenses Supplies 2,000 Total Current Assets Prop, plant, and equip Goodwill 90,160 62,000 3,000 Total Non-Current Assets Total Assets 65,000 155,160 Accounts Payable Accrued Liabilities Deferred Revenue Interest Payable Short Term Debt 15,000 12,000 15,000 500 15,000 Total Current Liabilities Long Term Debt 57,500 65,000 65,000 122,500 Total non-Current Liabilities Total Liabilities Common Stock (2000 shares) APIC Retained Earnings Total SE Total Liabilities & SE 29,970 2,660 32,660 155,160 Income statement for Jan 1 - Dec 31, 2019 Updated Income statement Revenue 72,000 Cost of goods Sold 10,480 Interest Expense 1,500 Wastage Expense 4,520 Bad Debt Expense 9,000 Insurance Expense 400 Marketing Expense 10,000 Utilities & Wage Exp 12,000 Goodwill Imp. Exp 7,000 Depreciation Exp Discount Expense 10,000 1,440 Net Income 5,660 Cash Flow Statement for Jan 1, 2019 - Dec 31, 2019 Updated CFS 5,660 10,000 7,000 Net Income Add: Depreciation Add: Goodwill Impariment Change in Operating Assets & Liabilities Accounts Receivable Prepaid Expenses Supplies Deferred Revenue Accounts Payable Accrued Liabilities Interest Payable Short Term Debt (2,000) 15,000 15,000 12,000 500 15,000 CF From Operating Activities 78,160 Investment in Property, plant, and equipment Investment in Goodwill (72,000) (10,000) CF From Investing Activities (82,000) Issue of LT Debt Sale of stock FOR CASH Payment of dividends 65,000 30,000 (3,000) CF From Financing Activities 92,000 Change in Cash 88,160