8 9 Santa Fe Manufacturing Inc. is currently expanding their factory and has issued long-term bonds in order to fund this expansion. They issued $1,000,000 in bonds on April 1, 2022. The bonds will mature in 10 years and have a stated interest rate of 7%. The bonds have a yield rate of 9%, and pay interest semi-annually on April 1st and October 1st. The bonds are to be accounted for using the effective interest method. On October 1, 2024, Santa Fe decided to retire 20% of the bonds. At that time, the bonds were selling at 98. 10 Instructions (Round all values to the nearest dollar) a) Prepare the journal entry for the issuance of the bonds on April 1, 2022. (4 marks) 12 b) 13 Record all required journal entries related to the bonds up to and including December 31, 2023. (10 marks) Calculate the gain or loss on the partial retirement of the bonds on October 1, 2024. (3 marks) 4 d) Prepare the journal entries to record the partial retirement on October 1, 2024. (3 marks) 9 Santa Fe Manufacturing inc. is currently expanding their factory and has issued long-term bonds in order to fund this expansion. They issued $3,000,000 in bonds on April 1, 2022. The bonds will mature in 10 years and have a stated interest rate of 7%. The bonds have a yield rate of 9%, and pay interest semi-annually on April 1st and October 1st. The bonds are to be accounted for using the effective-interest method. On October 1, 2024, Santa Fe decided to retire 20% of the bonds. At that time, the bonds were selling at 9 10 Instructions (Round all values to the nearest dollar) 12 b) 13 14 Prepare the journal entry for the issuance of the bonds on April 1, 2022 (4 marks) Record all required journal entries related to the bonds up to and including December 31, 2023 (10 marks) Calculate the gain or loss on the partial retirement of the bonds on October 1, 2024 (3 marks) Prepare the journal entries to record the partial retirement on October 1, 2024 marks)