QUESTION 3 (21 marks) Goofie, Inc. experienced the following transactions in 2018: a. Sold bond of $200,000 in 10-year, 10% bonds payable at 98 for $196,000 on July 1. Interest is payable semiannually on January I and July 1. b. Issued 15,000 shares of $20 ordinary shares with par-value of S1 for cash on August 3. Purchased 900 ordinary shares as treasury shares paying $18 per share on September 20. d. Sold 500 shares of the treasury shares for $24 on November 30. e. Declared and paid $14,000 dividend to ordinary shareholders on December 31. Required: Please answer the following questions. 1 Please record transactions a-e in the journal. The company records treasury shares with cost method. (13 marks) ii. How much was the interest expense recognized in 2018 for the bond? Please show your calculations. (3 marks) iii. How much is the carrying value (book value) of the bond at the end of 2018? Please show your calculations. (1 mark) iv. As an existing ordinary shareholder of the company, do you prefer to raise new funds through the issuance of additional ordinary shares or through the issuance of bond? Why? (3 marks) In which section(s) of the statement of cash flows can we find cash flow information related to transactions a~e? (1 mark) 01/L