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On July 1, 2021, Amazon Corporation issued $ 1,000,000, 6%, 10-year bonds. Interest is payable annually with the first payment due on July 1, 2022.

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On July 1, 2021, Amazon Corporation issued $ 1,000,000, 6%, 10-year bonds. Interest is payable annually with the first payment due on July 1, 2022. Instructions a) Provide the appropriate journal entry on July 1, 2021 to record the issuance of the bonds if the market rate of interest is 5%. Please record your calculator inputs. (3 marks) b) Prepare an effective interest amortization table for the first two years of the bond. (4 marks) c) Assuming Amazon has a June 30th year end, prepare the 2022 year-end adjusting entry to account for accrued interest on the bonds. (2 marks) d) Prepare the journal entry on July 1, 2022 to record the first interest payment. (3 marks) e) Assume the bonds were redeemed for $1,050,000 at July 1, 2024 when the amortized cost was $ 1,035,000. Record the redemption of the bonds

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