On November 1, 2020, Natalinna Corporation issued $300,000 6% four year bonds, where interest is payable semi-annually on April 30 and October 31. The bonds were dated November 1, 2020 and mature on November 1, 2024. The accounting period has a year end of December 31. The market rate on date of the bond issue was 8%.

1. Calculate the proceeds of the bond (price) on November 1, 2020.

2. Prepare a full amortization schedule using the effective-interest method of amortization, starting your schedule at November 1, 2020.

3. Provide all Journal entries required for the years 2020 and 2021, starting with the Bond issue on November 1, 2020. (HINT: Prepare entries for the initial issue, for the semi-annual interest payments and for the year end accruals.)

4. Assuming that on April 1, 2022 that 40% of the bonds are called in at a price of 104 (104% x face value) plus accrued interest. Record the journal entries on April 1, 2022 to pay off the interest to these bondholders and to record the redemption of the bonds.

5. What is the balance of the Bonds Payable on April 2, 2022 after the 40% bonds were repurchased? Show calculations