On July 1, 2020, Davis Corp. issued 10-year, 800 Bonds, Par Value $1,000 each, Bonds carry 10% coupon rate, with interest payable semi-annually on January 1 and July 1. The bonds were issued for $908,722. On January 2, 2022, Davis offered to buy back the bonds at 103. Forty percent of the bondholders accepted the offer. Davis uses the effective-interest method of amortizing premium or discount. Instructions a) Prepare the journal entry to record the bond issuance. 2marks b) 4 Prepare the adjusting entry at December 31, 2020, the end of the fiscal year. 2marks c) Prepare the entry for the interest payment on January 1, 2021. 1marks d) What is the total cost of borrowing over the life of the bond? 2 marks e) Show the proper presentation for the Bonds on the Statement of Financial Position (Balance sheet) for Davis co. as of Dec 31, 2021 (1marks) f) Prepare the entry to record the retirement of the bonds for the 40% who accept the offer on January 2, 2022. 4marks Round all values to the nearest dollar. (Hint: you need to calculate the EIR)