Blue Ltd. sold $7,930,000 of 10% bonds, which were dated March 1, 2020, on June 1, 2020. The bonds paid interest on September 1 and March 1 of each year. The bonds' maturity date was March 1, 2030, and the bonds were issued to yield 12%. Blue's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2021, Blue bought back $3,930,000 worth of bonds for $3,830,000 plus accrued interest.

a. Using 1. a financial calculator, or 2. Excel function PV, calculate the issue price of the bonds and prepare the entry for the issuance of the bonds. (Hint: Use the account Interest Expense in your entry).

b. Using 1. a financial calculator, or 2. Excel function PV, calculate the carrying amount of the bond on September 1, 2020. Use the change in the carrying amount as the amount of amortization of the discount to be recorded in the entry for the first payment.

c. Prepare the journal entry for the scheduled interest payment on September 1, 2020.

d. Prepare any year-end entry required at February 28, 2021.

e. Accrue the interest on the portion of the bonds redeemed.

f. Prepare the entry required for the redemption of face value $3,930,000 of the bonds on June 1, 2021.