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Overtime Ltd. issued $6 million of 11% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The bonds' due
Overtime Ltd. issued $6 million of 11% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The bonds' due date is June 1, 2024. The bonds yield 10%. Overtime closes its books on December 31. Required: a. Calculate the issue proceeds of the bonds and prepare the journal entry to record the issuance of the bonds on June 1, 2020 (5 marks). b. Prepare a bond amortization schedule using the effective interest method (4 marks). c. Prepare the adjusting entry required (if any) for the year ended December 31, 2021 (3 marks). d. Prepare the journal entry to record interest on June 1, 2022 (3 marks). e. Assume that on June 1, 2022, the company retires half of the bonds for $3,000,000. Prepare the journal entry to record interest this retirement
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