Ace Ltd purchased 6%, 5-year bonds newly issued on January 1, 2020, for $676,452.24 having a maturity value of $800,000. The bonds provide the bondholders with a 10% yield. Interest is receivable on July 1^st and January 1^st each year. Ace Ltd holds the bonds to maturity.

• Prepare the journal entry at the date of purchase (2 marks)
• Prepare the bond amortization schedule (6 marks)
• Prepare the journal entries at July 1, 2020 and Dec 31^st 2020 (5 marks)