Question 2 (13 points) Champion Incorporated, a public company following IFRS, issued 7-year bonds with a face value of $4,200,000 on January 1, 2021. The bonds pay 7% interest on a semi- annual basis every January 1 and July 1. The bonds were issued to yield 8%. The bonds mature on January 1, 2028. On May 1, 2023, 1/2 of the bonds were called at 97 plus accrued interest. Champion Incorporated uses the effective interest method to account for any bond premium or discount. Required: 1. Calculate the amount at which the bonds were sold on January 1, 2021. (2 marks) 2. Prepare an amortization schedule for the first 5 interest payments following the issuance of the bonds. (3 marks) 3. Prepare Champion Incorporated's journal entries to record each of the following: a. The issuance of the bonds on January 1, 2021. (1 mark) b. The payment of bond interest on July 1, 2021. (1.5 marks) c. The repurchase and redemption of the bonds on May 1, 2023, including the payment of accrued interest on the retired bonds. Note that any entries pertaining to the bonds have been recorded to January 1, 2023, (5.5 marks) Click on the following link to access the dropbox you will use to submit your answer to this question: ACCT221 W Quiz 1