II. On November 1, 20x1, Bush Companyissued 10% bonds with a face amount of $20 million. The bondsmature in 10 years. For bonds of similar risk and maturity, themarket yield is 12%. Interest is paid semiannually on April 30 andOctober 31. Bush is a calendar-year corporation.
Required:
(1.)Determine the price of the bonds at November 1, 20x1.
(2.)Prepare the journal entry to record the bond issuance byBush on November 1, 20x1.
(3.)Prepare the journal entries (using the effective interestmethod):
a. December 31, 20x1
b. April 30, 20x2
c. October 31, 20x2
*Assumeno reversing entry is recorded on January 1, 20x2.
(4.) What would be the journal entry if all bonds are retired at103 on May 1, 20x3 right after the third payment.
Please all 4 questions, I think I have the price right but wouldlike to make sure my answers are correct before turning it in,thank you
