Question 4 (30%) Transactions from Demo Communications:

2020 Jan 1 Issued $6,000,000 of 9%, 10-year bonds payable when the market rate is 8%. The issuing price is $6,405,300 Jul 1 Paid semi-annual interest and amortized bonds by the effective interest method on the 9% bonds payable. Dec 31 Accrued semi-annual interest expense and amortized bonds by the effective interest method on the 9% bonds payable.

2021 Jan 1 Paid semi-annual interest. Jul 1 Paid semi-annual interest.

2030 Jan 1 Paid the 9% bonds at maturity.

Requirements: 1. Prepare the bond am