Part A (12 marks) The company Unlimited Gain issues $2,000,000 face value of seven-year bonds on January 1, 2022 when the market interest rate is 5%. The bonds are sold for $1,884,272 and the bonds pay 4% interest annually. (Round to the nearest dollar) Required: i. Prepare the issuer's journal entry to record the issuance of the bond. (3 marks) ii. Compute the total bond interest expense over the bonds' life. (1 mark) Part B (8 marks) i. The company Sure Win makes an early redemption of bond for $315,000 on July 1, 2022. However, these bonds, with a par value of $300,000, were issued at a premium for $309,000 on the issue date. There is still a remaining unamor- tized amount of $3,000 of the premium on bonds payable right before the retirement. Required: Prepare the journal entry to record the retirement of the ii. Jackson Corporation is planning a $200,000 expansion to meet increasing demand for its product. Jackson Corporation is considering two plans to raise the money. Under Plan A, bonds with a contract rate of interest of 8% would be issued. Under Plan B, 10,000 additional ordinary shares would be issued at $20 per share. The corporation currently has 100,000 shares outstanding, and it expects to earn $300,000 per year before bond interest and income taxes. The net profit and return on investment for both plans is shown below: iii. Prepare an effective interest amortization table for the first two interest payment periods using the format shown below: (5 marks) Semiannual Cash Bond Interest Interest Interest Discount Unamortized Period Paid Expense Amortization Discount Carrying Amount Plan A Plan B Earnings before bond interest and taxes $ 300,000 $ 300,000 Bond interest expense (16,000) Income before taxes S 284,000 $ 300,000 (99,400) (105,000) Income taxes Net profit Equity Return on Equity $ 184,600 $ 195,000 $2,000,000 $2,200,000 9.23% 8.86% iv. Prepare the journal entry to record the first interest pay- ment. (3 marks) Required: Please compare the above two plans to raise the money. (4