On January 1, 2020, Ellison Co. issued eight-year bonds with a face value of $5,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%.

a) Determine the issue price of the bond on January 1, 2020 and make the journal entry to record the sale. .

b) Prepare the amortization table for 2020, 2021 and 2022. (UPLOAD IN THE OTHER FOLDER)

c) Make the entry to buy back the bond on December 31, 2022 at the different prices below:

(i) $5,500,000

(ii) $3,500,000

TABLE 4 Present Value of an Ordinary Annuity of $1 1 1- (1 + 7)" PVA = 4.5% 8.0% 20.0% 7.0% 4.0% 5.0% 5.5% 9.0% 6.0% 10.0% 11.0% 12.0% 3.0% 2.5% 3.5% 2.0% 1.5% n/ 1.0% 0.95238 0.94787 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.83333 0.97087 0.96618 0.96154 0.95694 1 0.97561 0.99010 0.98522 0.98039 1.89969 7.88609 1.87267 1.91347 1.85941 1.92742 1.84632 1.83339 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.52778 2 2.53129 2.48685 2.44371 2.40183 2.10648 1.97040 1.95588 1.94156 2.94099 2.91220 2.88388 3.90197 3.85438 3.80773 2.80164 2.77509 2.74896 2.62132 2.57710 2.85602 2.72325 2.69793 2.67301 2.82861 3 3.38721 3.31213 4 3.76197 3.71710 3.67308 3.62990 3.58753 3.54595 3.50515 3.46511 4.64583 4.57971 4.51505 4.45182 4.38998 4.32948 4.27028 4.21236 3.23972 3.16987 3.10245 3.03735 2.58873 3.88965 3.79079 3.69590 3.60478 2.99061 4.10020 3.99271 5 4.85343 4.78264 4.71346 4.76654 4.62288 4.48592 4.35526 4.25054 4.11141 3.32551 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 3.60459 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 3.83716 6 5.79548 5.69719 5.80143 5.50813 5.41719 5.32855 5.24214 5.15787 5.07569 4.99553 4.91732 7 6.72819 6.59821 6.47199 6.34939 6.23028 6.11454 6.00205 5.89270 5.78637 5.68297 5.58238 8 7.65168 7.48593 7.32548 7.170147.01969 6.87396 6.73274 6.59589 6.46321 6.33457 6.20979 9 8.56602 8.36052 8.16224 7.97087 7.78611 7.60769 7.43533 7.26879 7.10782 6.95220 6.80169 10 9.47130 9.22218 8.98259 8.75206 8.53020 8.31661 8.11090 7.91272 7.721737.53763 7.36009 6.51523 6.24689 5.99525 5.75902 5.53705 5.32825 4.03097 7.02358 6.71008 6.41766 6.14457 5.BE923 5.65022 4.19247 11 10.36763 10.07112 9.78685 9.51421 9.25262 9.00155 8.76048 8.52892 8.30641 8.09254 7.88687 12 11.25508 10.90751 10.57534 10.25776 9.95400 9.66333 9.38507 9.11858 8.86325 8.61852 8.38384 13 12.13374 11.73153 11.34927 10.98319 10.63496 10.30274 9.98565 9.68285 9.39357 9.11708 8.85268 14 13.00370 12.54338 12.10625 11.69091 11.29607 10.92052 10.56312 10.22283 9.89864 9.58965 9.29498 15 13.86505 13.34323 12.84926 12.38138 11.93794 11.51741 11.11839 10.73955 10.37966 10.03758 9.71225 7.49867 7.13896 6.80519 6.49506 6.2C652 5.93770 4.32706 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 4,43922 8.35765 7.90378 7.48690 7.10336 6.74987 6.42355 4.53268 8.74547 8.24424 7.78615 7.36669 6.90187 6.62817 4.61057 9.10791 8.55948 8.06069 7.60608 7.15087 6.81086 4.67547 8.31256 7.82371 7.37916 6.97399 4.72956 8.54363 8.02155 7.54879 7.11963 4.77463 8.75563 B.20141 7.76162 7.24967 4.81219 16 14.71787 14.13126 13.57771 13.05500 12.56110 12.09412 11.65230 11.23402 10.83777 10.46216 10.10590 9.44665 8.85137 17 15.56225 14.90765 14.29187 13.71220 13.16612 12.65132 12.16567 11.70719 11.27407 10.86461 10.47726 9.75322 9.12164 18 16.39027 15.67256 14.99203 14.35336 13.75351 13.18968 12.65930 12.15999 11.68959 11.24607 10.92760 10.05909 9.37189 19 17.22601 16.42617 15.67846 14.97889 14.32380 13.70984 13.13394 12.59329 12.08532 11.60765 11.15812 10.33560 9.60360 20 18.04555 17.16B64 16.35143 15.58916 14.87747 14.21240 13.59033 13.00794 12.46221 11.95038 11.46992 10.59401 9.81815 8.95011 8.36492 7.85929 7.36578 4.84350 9.12855 8.51356 7.98333 7.46944 4.86958 21 18.85698 17.90014 17.01121 16.18455 15.41502 14.69797 14.02916 13.40472 12.82115 12.27524 11.76408 10.83553 10.01680 9.29224 8.64869 8.07507 7.56200 4.89132 25 22.02316 20.71961 19.52316 78.42438 17.41315 16.48151 15.62208 14.82821 14.09394 13.41393 12.78336 11.65358 10.67478 9.82258 9.07704 8.42174 7.84314 4.94759 30 25.80771 24.01584 22.39646 20.93029 19.60044 18.39205 17.29203 16.28889 15.37245 14.53375 13.76483 12.40904 11.25778 10.27365 9.42691 8.65379 8.05518 4.97894 40 32.83469 29.91585 27.35548 25.10278 23.11477 21.35507 19.79277 18.40158 17.15909 16.04612 15.04630 13.33171 11.92461 10.75736 9.77905 8.99105 8.24378 4.99660 TABLE 2 Present Value of $1 $1 PV = (1 + in 1.5% 2.0% ni 1.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 20.0% 1 0.99010 0.98522 0.98039 0.97561 0.97087 0.96618 0.96154 0.95694 0.95238 0.94787 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.83333 2 0.98030 0.97066 0.96117 0.95181 0.94260 0.93351 0.92456 0.91573 0.90703 0.89845 0.89000 0.87344 0.84168 0.82645 0.69444 0.85734 0.79383 0.81162 0.79719 0.73119 0.71178 0.57870 3 0.97059 0.95632 0.94232 0.92860 0.91514 0.90194 0.88900 0.87630 0.86384 0.85161 0.83962 0.81630 4 0.96098 0.94218 0.92385 0.90595 0.88849 0.87144 0.85480 0,83856 0.82270 0.80722 0.79209 0.76290 5 0.95147 0.92826 0.90573 0.88385 0.86261 0.84197 0.82193 0.80245 0.78353 0.76513 0.74726 0.71299 0.73503 0.77218 0.75131 0.70843 0.68301 0.64993 0.62092 0.65873 0.63552 0.48225 0.68058 0.59345 0.56743 0.40188 0.53464 0.50663 0.33490 0.63017 0.59627 0.56447 0.58349 0.54703 0.51316 0.48166 0.45235 0.27908 6 0.94205 0.91454 0.88797 0.86230 0.83748 0.81350 0.79031 0.76790 0.74622 0.72525 0.70496 0.66634 7 0.93272 0.90103 0.87056 0.84127 0.81309 0.78599 0.75992 0.73483 0.71068 0.68744 0.66506 0.62275 8 0.92348 0.88771 0.85349 0.82075 0.78941 0.75941 0.73069 0.70319 0.67684 0.65160 0.62741 0.58201 9 0.91434 0.87459 0.83676 0.80073 0.76642 0.73373 0.70259 0.67290 0.64461 0.61763 0.59190 0.54393 10 0.90529 0.86167 0.82035 0.78120 0.74409 0.70892 0.67556 0.64393 0.61391 0.58543 0.55839 0.50835 0.54027 0.50187 0.46651 0.23257 0.43393 0.40388 050025 0.46043 0.42410 0.39092 0.36061 0.19381 0.46319 0.42241 0.38554 0.35218 0.32197 0.16151 0.42888 0.38753 0.35049 0.31728 0.28748 0.13459 0.28584 0.25668 0.11216 11 0.89632 0.84893 0.80426 0.78214 0.72242 0.68495 0.64958 0.61820 0.58468 0.55491 0.52679 0.47509 12 0.88745 0.83639 0.78849 0.74356 0.70138 0.66178 0.62460 0.58966 0.55684 0.52598 0.49697 0.44401 13 0.87866 0.82403 0.77303 0.72542 0.68095 0.63940 0.60057 0.56427 0.53032 0.49856 0.46884 0.41496 14 0.86996 0.81185 0.75788 0.70773 0.66112 0.61778 0.57748 0.53997 0.50507 0.47257 0.44230 0.38782 0.39711 0.35553 0.31863 0.36770 0.32618 0.28966 0.34046 0.29925 0.26333 0.25751 0.22917 0.09346 0.23199 0.20462 0.07789 0.31524 0.27454 15 0.86135 0.79985 0.74301 0.69047 0.64186 0.59689 0.55526 0.51672 0.48102 0.44793 0.41727 0.36245 0.23939 0.20900 0.18270 0.06491 0.188.29 0.16312 0.05409 0.04507 0.16963 0.14564 0.15282 0.13004 0.03756 16 0.85282 0.78803 0.72845 0.67362 0.62317 0.57671 0.53391 0.49447 0.45811 0.42458 0.39365 0.33873 0.29189 0.25187 0.21763 17 0.84438 0.77639 0.71416 0.65720 0.60502 0.55720 0.51337 0.47318 0.43630 0.40245 0.37136 0.31657 0.27027 0.23107 0.19784 18 0.83602 0.76491 0.70016 0.64117 0.58739 0.53836 0.49363 0.45280 0.41552 0.38147 0.35034 0.29586 0.25025 0.21199 0.17986 19 0.82774 0.75361 0.68643 0.62553 0.57029 0.52016 0.47464 0.43330 0.39573 0.36158 0.33051 0.27651 0.23171 0.19449 0.16351 20 0.81954 0.74247 0.67297 0.61027 0.55368 0.50257 0.45639 0.41464 0.37689 "0.34273 0.31180 0.25842 0.21455 0.17843 0.14864 0.13768 0.11611 0.03130 0.12403 0.10367 0.02608 0.16370 0.13513 0.11174 0.09256 0.02174 21 0.81143 0.73150 0.65978 0.59539 0.53755 0.48557 0.43883 0.39679 0.35894 0.32486 0.29416 0.24151 0.19866 24 0.78757 0.69954 0.62172 0.55288 0.49193 0.43796 0.39012 0.34770 0.31007 0.27666 0.24698 0.19715 0.15770 25 0.77977 0.68921 0.60953 0.53939 0.47761 0.42315 0.37512 0.33273 0.29530 0.26223 0.2330D 0.18425 0.14602 0.12640 0.10153 0.08170 0.06588 0.01258 0.05882 0.01048 0.11597 0.09230 0.07361 0.08955 0.06934 0.05382 0.11591 0.04187 0.00607 28 0.75684 0,65910 0.57437 0.50088 0.43708 0.38165 0.33348 0.29157 0.25509 0.22332 0.19563 0.15040 29 0.74934 0.64936 0.56311 0.48866 0.42435 0.36875 0.32065 0.27902 0.24295 0.21168 0.18456 0.14056 0.10733 0.08215 0.06304 0.04849 0.03738 0.00506 0.09938 0.07537 0.05731 0.04368 0.03338 0.00421 30 0.74192 0.63976 0.55207 0.47674 0.41199 0.35628 0.30832 0.26700 0.23138 0.20064 0.17411 0.13137 31 0.73458 0.63031 0.54125 0.46511 0.39999 0.34423 0.29646 0.25550 0.22036 0.19018 0.16425 0.12277 -40 0.67165 0.55126 0.45289 0.37243 0.30656 0.25257 0.20829 0.17193 0.14205 0.11746 0.09722 0.06678 0.09202 0.06915 0.05210 0.03935 0.02980 0.00351 0.04603 0.03184 0.02209 0.01538 0.01075 0.00068