Q#5: Bonds payable issued between interest dates - early retirement Dilawar Imports received authorization on December 31, Year 1, to issue $4,500,000 face value of 8%, 20-year bonds. The interest payment dates are June 30 and December 31. All the bonds were issued at par, plus accrued interest on February 1, Year 2. The bonds are callable by Deegan at any time at 105. i. What is the amount of bond interest expense reported in Dilawar Imports' Year 2 income statement relating to these bonds? What is the amount of bond interest payable appearing in Dilawar Imports' balance sheet at December 31, Year 2, with respect to these bonds? ii. iii. If Dilawar exercises the call provision and retires one-third of the bond issue on July 1, Year 3. Prepare the journal entry to record this transaction on July 1, Year 3. (Marks 05)