please use the two tables (second and third pictures) to solve the present value calculations question

1 of 24 2:26:42 QUESTION A- Accounting for Bonds (16 marks; 28 minutes) Donald Ltd. issued 4-year, $40 million bonds on January 1, 2021. The stated interest rate is 5.5 percent, and interest is payable semi-annually on June 30 and December 31. The market interest rate for similar bonds was 6 percent at the time of issuance. The company uses a discount or premium on bonds payable account and the effective interest method to amortize bond discount or premium. Use the tables provided with this exam for your present value calculations. Required (Round the results of your calculations to the nearest dollar): 1. Prepare the journal entry to record the issuance of the bonds on January 1, 2021. (3 marks) 2. Prepare the journal entry to record the interest payment on December 31, 2021. (4 marks) 3. Assume that on January 1, 2022, Donald repurchases one-half of the outstanding bonds on the open market at 93. Prepare the journal entry to record this transaction. Ignore the interest that would accrue for one day on January 1, 2022. (4 marks) 4. Show, in good form, how the bond-related information would be reported on a statement of financial position prepared immediately after this transaction, and on a statement of cash flows for the year 2022 based on the indirect method. (5 marks) Use the following tables for questions requiring present value calculations. Present Value Tables TABLE A.1: Present Value of S1, p=1/1+0" Periods 2% 2.5% 2.75% 1 0.980 0.976 0.973 2 0.961 0.952 0.947 3 0.942 0.929 0.922 4 0.924 0.906 0.897 S 0.906 0.884 0.873 6 0.888 0.862 0.850 0.871 0.841 0.827 8 0.854 0.821 0.805 0.837 0.801 0.783 10 0.820 0.781 0.762 20 0.673 0.610 0.581 Periods 6% 7% 8% 1 0.943 0.935 0.926 2 0.890 0.873 0.857 0.840 0.816 0.794 0.792 0.763 0.735 0.747 0.713 0.681 0.705 0.666 0.630 0.665 0.623 0 584 0.627 0.582 0.540 0.592 0.544 0.500 10 0.558 0.508 0.463 20 0.312 0.258 0.215 098 3% 0.971 0.943 0.915 0.889 0.863 0.838 0.813 0.790 0.766 0.744 0.553 9% 0.917 0.842 0.772 0.708 0.650 0.596 0.547 0.502 0.460 0.422 0.178 3.75% 0.964 0.929 0.895 0.863 0.832 0.802 0.773 0.745 0.718 0.692 0.479 10% 0.909 0.826 0.751 0.683 0.621 0.565 0.513 0.467 0.424 0.386 0.149 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.456 11% 0.901 0.812 0.731 0.659 0.594 0.535 0.482 0.434 0.391 0.352 0.124 4.25% 0.960 0.920 0.883 0.847 0.812 0.779 0.747 0.717 0.688 0.66 0.435 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 0.104 5% 0.952 0.907 0.864 0.823 0.784 0.746 0.711 0.677 0.645 0.614 0.377 13% 0.883 0.783 0.693 0.613 0.543 0.480 0.425 0376 0.333 0.295 0.087 5.5% 0.948 0.899 0.852 0.807 0.765 0.725 0.687 0.652 0.618 0.585 0.343 14% 0.877 0.770 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 0.073 van WN 0.087 0.073 TABLE A.2: Present Value of Annuity of S1, P= [1 - 1/(1+0) Periods 2% 2.5% 2.75% 3% 3.75% 0.980 0.976 0.973 0.971 0.964 2 1.942 1.927 1.920 1.914 1.893 2884 2.856 2.842 2.829 3.808 2.788 3.762 3.739 3.717 3.651 4.714 4.646 4.613 4.580 4.483 5.601 5.508 5.462 5.417 6.472 5.285 6,349 6.289 6.230 7.326 6058 7.170 7.094 7.020 8.162 6.803 7.971 7.878 7.786 10 7.521 8.983 8.752 8.640 8.530 20 8.213 16.351 15.589 15.227 14.878 13.896 Periods 6% 7% 8% 9% 10% 1 0.943 0.935 0.926 0.917 0.909 2 1.833 1.808 1.783 1.759 1.736 2.673 2.624 2.577 2.531 2.487 3.465 3,387 3.312 3.240 3.170 4.212 4.100 3.993 3.890 3.791 4917 4.767 4.623 4.486 4.355 5.582 5.389 5.206 5.033 4.868 6.210 5.971 5.747 5.535 5.335 9 6.801 6.515 6.247 5.995 5.759 10 7.360 7.024 6.710 6.418 6.145 20 11.470 10.594 9.818 9.129 8.514 4% 0.962 1.886 2.775 3.630 4.452 5.242 6.002 6.733 7.435 8.111 13.590 11% 0.901 1.713 2.444 3.102 3.696 4.231 4.712 5.146 5.537 5.889 7.963 4.25% 0.959 1.879 2.762 3.609 4.421 5.200 5.947 6,664 7.351 8.011 13.294 12% 0.893 1.690 2.402 3,037 3.605 4.111 4.564 4.968 5.328 5.650 7.469 5% 0.952 1.859 2.723 3.546 4.330 5,076 5.786 6.463 7.108 7.722 12.462 13% 0.855 1.668 2.361 2.975 3.517 3.998 4.423 4.799 4.132 5.426 7.025 5.5% 0948 1.846 2.698 3.505 4.270 4.996 5.683 6.335 6.952 7.538 11.950 14% 0.877 1.647 2.322 2.914 3.433 3.889 4.288 4.639 4.946 5.216 6.623 850