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On December 31, Year 2, CD Corporation issued $1,000,000(face value)6% bonds to yield 5%. Interest...

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Accounting

On December 31, Year 2, CD Corporation issued $1,000,000(face value)6% bonds to yield 5%. Interest is payable semi-annually on December 31 and June 30, with the bonds maturing in 10 years. The bonds are callable at 102. On September 30, Year 4, CD Corp. redeemed 40% of the bond issue at the call price plus accrued interest. CD Corporation follows IFRS. Round your answers to the nearest dollar.
Required:
a. Provide a bond amortization table for the first four interest periods. (2 marks)
b. Provide the following journal entries:
Issue of the bonds (2 marks)
Interest payment on June 30, Year 4(note the date)(2 marks)
c. Provide the journal entry to redeem the bonds. Provide calculations for possible part marks. (4 marks)

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