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On May 1,2024, MEM Corp. issued $900,000 of 5-year, 5% bonds...

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Accounting

On May 1,2024, MEM Corp. issued $900,000 of 5-year, 5% bonds at $861,614. This price resulted in an effective interest rate of 6% on the bonds. The bonds pay interest semi-annually on May 1. MEMs year end is April 30.
Instructions
Record the issue of the bonds on May 1,2024.
Prepare an effective-interest amortization table for this bond.
Journalize the first four interest payments and applicable interest accruals.
Assume that on May 1,2027, after payment of the interest, MEM redeems all of the bonds at 102. Record the redemption of the bonds.
Taking It Further Why would MEM elect to redeem the bonds early?

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