Question 4: Bonds [45 points] On June 1, 2024, Western Communications, Inc., issued 12% bonds with face amount of $2,600,000. The bonds mature on May 31, 2030 (6 years). Interest is paid semiannually on May 31 and November 30 of each year. The market yield was 14%. On October 1, 2025, Western Communications paid $672,000 (which includes accrued interest) to purchase and retire bonds of face value $650,000. The fiscal years of Western Communications end on December 31. Required: 1. Determine the initial selling price of the bonds at June 1, 2024, and prepare the journal entry to record their issuance by Western Communications. [7 points] Calculation of selling price: Journal Entries: Account name Debit Credit 2. Complete the following amortization schedule assuming the company uses the effective interest method. [8 points] Date June 1, 2024 Nov. 30, 2024 May. 31, 2025 Nov. 30, 2025 May. 31, 2026 Cash Interest Interest Expense Premium /Discount Carrying value Amortization of bonds 3. Prepare the journal entries to record interest expense on 11/30/2024, 12/31/2024, and 5/31/2025. [12 points] Account name Debit Credit 4. Present all journal entries to record the redemption of the bonds on October 1, 2025. Journal entry to record interest expense and amortization of premium or discount: [4 points] Account name Debit Credit Journal entry to record early redemption of bonds: [6 points] Account name Debit Credit