ABC Education (ABC) issued $2,000,000 (Bond A), 10.5%, 10-year bonds on January 1, 2017 and pay interest annually on January 1. The effective interest rate was 10% at that time and ABC received $2,061,440. On September 1, 2018, ABC issued $1,000,000 (Bond B), 11%, 5-year bonds and received $963,194.95. Interest for this bond is payable semi-annually on March 1 and September 1. The effective interest rate was 12%. The company's financial year ends at December 31 and prepares adjusting entries semi-annually. Required: (a) Prepare a bond amortization schedule for the $2,000,000 bond (Bond A) from 2017 to 2021. In your schedule, please show the (i) date, (ii) cash paid, (iii) interest expense, (iv) amortization and (v) carrying value of the bonds. Round your answers to the nearest dollar. (2 marks) (6) Kate, a junior accountant prepared the following three sets of journal entries to record all the bond interest movement during the year 2020. Your supervisor, Jack asked you to review, comment and correct her works. On the basis of the explanation for each entry, please write an email to your supervisor and explain the following: (i) the reasons for Kate's mistakes; (ii) the proper procedures to record ABC's bonds during the bonds life and the usefulness of this information to financial statement users; (iii) the correcting journal entries to correct Kate's mistakes; (iv) all the journal entries that Kate should prepare on December 31, 2020. Please state clearly the above headings in your email and limit your email to 450 words. Leave 2 decimal places in your calculation process. Debit $ Credit $ 1 March 2020 Bond Interest Expense 55,000 Cash 55,000 (to record $1 million Bond B interest payment) | 1 September 2020 Bond Interest Expense 55.000 Cash (to record $1 million Bond B interest payment) 31 December 2020 Bond Interest Expense SC Expense 210,000 Bonds Payable 4,666 Bond Interest Payable 205,334 (to record adjusting entries for $2 million Bond A) S5.000 (18 marks)