On May $1,2024,$ MEM Corp. issued $$900,000$ of $5-$year, $5\%$ bonds at $$861,614.$ This price resulted in an effective interest rate of $6\%$ on the bonds. The bonds pay interest semi$-$annually on May $1.$ MEM$$s year end is April $30.$

Instructions

Record the issue of the bonds on May $1,2024.$

Prepare an effective$-$interest amortization table for this bond.

Journalize the first four interest payments and applicable interest accruals.

Assume that on May $1,2027,$ after payment of the interest, MEM redeems all of the bonds at $102.$ Record the redemption of the bonds.

Taking It Further Why would MEM elect to redeem the bonds early?