Part I:

Twilight Corp. A company listed on Toronto Stock Exchange, desired to raise cash to fund its expansion by issuing long-term bonds. On November 1, 2019, Twilight sold $500,000 in long-term bonds for cash proceeds of $437,689. The bonds will mature in 10 years and have a stated interest rate of 8%. Market rate on the day of issuance of bond was 10%. The bonds pay interest semi-annually on April 30 and October 31. On March 31, 2020, Twilight decided to retire 100% of the bonds. At that time the bonds were selling at 101. Twilight paid the market price of the bond plus the accrued interest. Twilight has December 31 year end and it also issue half yearly financial statements.

Required: a) Prepare all journal entries required for March 31, 2020.

Part II:

On December 31, 2019, Big Capital Bank enters into a debt restructuring agreement with Canadian Mineral Inc. which is experiencing financial difficulties. The bank restructures a $13.00 million receivable issued at par (interest paid up to date) by all of following:

1. 1) It reduces principal obligation from $13.00 million to $10.00 million.

2. 2) It extends maturity date from December 31, 2019 to December 31, 2024.

3. 3) It reduces the interest rate from 8% to 6%, market rate is currently 10%.

Required: A) Discuss in detail if Canadian Mineral Inc. can recognized gain or loss on this restructuring. B) Regardless of you conclusion for requirement A, assume it is bond settlement, prepare journal entries for Canadian Mineral Inc. and Big Capital Bank on December 31, 2019.

Part III:

On April 1, 2017, Saturn Corp. issued $600,000, 9% bonds (dated January 1, 2017) at par plus accrued interest. Interest is payable annually on December 31, and the bonds mature on December 31, 2025.

Required: RecordthejournalentryonDecember31,2017.