Part 2--Sample Bond problem on recording bonds payable: On January 1, 2016, Shirley Corporation purchased 10% bonds dated January 1, 2016, with a face amount of $10 million. The bonds mature in 2025 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Required: 1. Determine the price of the bonds at January 1, 2016. 2. Prepare the journal entry to record the bond purchase by Shirley on January 1, 2016. 3. Prepare the journal entry to record interest on June 30, 2016, using the effective interest method. 4. Prepare the journal entry to record interest on December 31, 2016, using the effective interest method. 5. What is the book value of the bond issue on December 31, 2016? Hint: Bond price = $8,852,960 Amortization of discount for #4:33,048 Book value at 12/31/16 = $8,917,186. Part 3-Recording notes payable On November 1, 2021, Ziegler Products issued a $200,000, 9-month, noninterest-bearing note to the bank. Interest was discounted at a 12% discount rate. Required: 1,3 & 4. Prepare the appropriate journal entry by Ziegler to record the issuance of the note. If the note had been structured as a 12% note with interest and principal payable at maturity, then prepare the appropriate journal entry to record the issuance of the note by Ziegler (Hint: Debit cash $182,000) Also record the accrual of interest expense on the 12% note for the 2021 financial statements on December 31, 2021. (Hint: Debit interest expense = $4.000) 2. Determine the effective interest rate. (hint: 13.2%)