Amba Ltd issues 2 million $2, 5-year, 6% semi-annual coupon debentures to the public on 1 January 2019. At that date the market requires a 4% return for similar debentures. Amba Ltds balance date is 31 December.

Required:

a). Calculate the issue price for the debenture, showing calculations. b). Prepare a repayment/amortisation schedule for the debentures. c). Provide the journal entries (with narrations) for:

1. 1 January 2019;

2. 31 December 2020 (second year); and

3. 31 December 2023 (end of the Debenture term).