Chapter 14 Problem On August 1, 2021, Red Corporation. sold 8%, five-year bonds with a maturity value of $6,000,000 when the rate in the market was 6%. Interest on the bonds is payable semi-annually on August 1 and February 1. The bonds are callable at 104 at any time after August 1, 2023. The company decides to exercise the bond's call feature and issue new five-year bonds at 6%. Red Corp. exercises the 8% bonds call feature on February 1, 2024 after the payment of interest. Red Corporation's year end is November 30. Instructions a. Calculate the issue price of the bond on August 1, 2021. b. Prepare the journal entries required on Red Corporation's books for the first two years of the bond. c. Prepare the journal entry required on February 1, 2024 to record the redemption of the bond at 104. d. Assume the same information above, except that the bond is now being issued on October 1, 2021. Prepare the journal entry to record the issue with accrued interest