On June 1, 2020, Lush Corporation (Lush) issued $400,000 of 7.5% callable bonds, when the market rate of interest was 8.0%. The 5 year bonds are dated April 30, 2020 and pay interest semi-annually each April 30 and October 31. The late issuance of the bonds was due to underwriter delays. Lush is a public company with a December 31 year-end, and follows IFRS. On July 31, 2021, 10% of the bonds were retired at 99 plus accrued interest.

Required: (Please date your journal entries and show all calculations)

Calculate the proceeds from the bond issue on June 1, 2020. (1 mark)

Prepare the journal entry to record the bond issuance on June 1, 2020. (2 marks)

Prepare a bond amortization table for Lush's $400,000 Bonds. (4 marks)

Prepare all necessary journal entries for Lush to account for the bonds on each of October 31, 2020, December 31, 2020, and April 30, 2021. (6 marks)

Prepare the necessary journal entries for Lush to retire 10% of the bonds, and pay accrued interest, on July 31, 2021. Show your supporting calculations. (3 marks)

Prepare Lush's journal entry to record the payment of interest on the remaining 90% of the bonds on October 31, 2021. (2 marks)