Transcribed Image Text
In: AccountingOn November 1, 20x1, Bush Company issued 10% bonds with a faceamount of $20 million....On November 1, 20x1, Bush Company issued 10% bonds with a faceamount of $20 million. The bonds mature in 10 years. For bonds ofsimilar risk and maturity, the market yield is 12%. Interest ispaid semiannually on April 30 and October 31. Bush is acalendar-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, 20x1b. April 30, 20x2c. October 31, 20x2?*Assume no reversing entry is recorded on January 1,20x2.(4.) What would be the journal entry if all bonds are retiredat 103 on May 1, 20x3 right after the third payment.