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Problem 9: Issuance and Retirement of Bonds (23 Points) Belize City Council is building a new civic center at a cost of $5,600,000. It received

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Problem 9: Issuance and Retirement of Bonds (23 Points) Belize City Council is building a new civic center at a cost of $5,600,000. It received a down payment of $600,000 from local businesses to support the project, and now needs to borrow $5,000,000 to complete the project. It therefore decides to issue $5,000,000 of 8%,20-year bonds. These bonds were issued on January 1, 2019 and pay interest annually on each January 1. The bonds yield 10%. Instructions: 1. Prepare the journal entry to record the issuance of the bonds and the related bond issue costs incurred on January 1, 2019. 2. Prepare a bond amortization schedule up to and including January 1, 2023, using the effective-interest method. 3. Assume that on July 1, 2022, Belize City Council. retires 40% of the bonds at a cost of $2,040,000 plus accrued interest. Prepare the journal entry to record this retirement

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