Showa Inc. issued $8,000,000 face value of 4.5% bonds on July 1st, 2020. Additional information on the bond issue is as follows:

Bond Date July 1st, 2020

Maturity Date July 1st, 2030

Yield rate 4%

Interest payment dates June 30th and December 31st

Bond discount/premium amortization Effective Interest Rate Method

Year end December 31st

Please round all calculations to the nearest dollar.

Determine the bond cash proceeds? Calculate the amount of premium/discount, if any.

Please record journal entries for the bond issuance on July 1st and interest payment on December 31st.

On July 1st, 2026, Showa redeemed 35% of the bonds outstanding at 991/4. Calculate the carrying value of the bond on July 1st, 2026.

Calculate the amount of cash paid.

Calculate the gain or loss on redemption.

Please record the journal entries for the bond redemption on July 1st and the interest payment on December 31st, 2026.