Q1 On 01-01-2017, M/S Ericsson Company Limited sold a Bond having value $1,000,000 and company only received $ 922,783 against the Bond issuance. The Coupon Rate was 8% on Semi Annual basis. The maturity of Bond was 10 years. The Effective Interest Rate was 10%. On 30th April, 2020, company "Call the Bond" and paid back the Bond payable amount to the lenders.

You are required to calculate the following:

i. What is the carrying value of the bond as on 30th April, 2020.

ii. Make journal entries (both for Coupon & Amortization) only for the year 2020

iii. You are required to highlight the reasons for which company took the decision to pay off the Bond amount to the lenders.

ans all three parts