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On 1 July 2022 MNL Ltd issues $1 million in five-year bonds that pay interest each six months at a coupon rate of 10 per

On 1 July 2022 MNL Ltd issues $1 million in five-year bonds that pay interest each six months at a coupon rate of 10 per cent. At the time of issuing the securities, the market requires a rate of return of 8 per cent. Interest expense is determined using the effective-interest method.

REQUIRED

Determine the issue price.

Provide the journal entries for the following

1 July 2022

30 June 2023

30 June 2024.

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