Assume the following: Romeo Ltd. needed to raise additional capital to finance its expansion. The company decided to issue bonds. The bonds had a face value of $500 million and an annual interest rate of 4.5%, paid semi-annually on June 30 and December 31, and will reach maturity on December 31, 2030. The bonds were issued at 96.1 on January 1, 202, which represented a yield of 5%. Use this given information to answer Questions 33 and 34.

Determine the bonds discount

The journal entry to record the issuance of the bonds