AZM Berhad issued ten-year bonds that amounted RM 3,700,000 on the first of January 2018,

with a stated rate 11% and an effective rate 12%. Interest is payable annually on December 31.

On 1st of January 2021, the company called and retired RM 1,500,000 face amount of the bonds

at 101%.

Required:

(a) Calculate the price of the AZM Berhad bonds when issued on 1 st of January, 2018.

(b) Prepare an amortization schedule for 20182021 for the bonds.

(c) Determine the amount of loss, if any, to be recognized by AZM Bhd. as a result of retiring

the RM2,000,000 of bonds on 1st of January, 2021, and prepare the journal entry to record the

retirement.