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Solar Wave Company issued bonds on April 1 , 2 0 2 4 . The bonds pay interest on April 1 and October 1 of

Solar Wave Company issued bonds on April 1,2024. The bonds pay interest on April 1 and October 1 of each year. Solar Wave has a December 31 year end and follows IFRS. Solar Wave repurchases and cancels a portion of the bonds on November 1,2025, paying any interest accrued on the retired bonds. Other information pertaining to the bond issue follows:
Par value of the bonds: $1,127,000
Market rate of interest: 8%
Coupon rate of bonds: 9%
Bond term (in years): 6
Bond repurchase price on November 1,2025: 103
Percentage of bonds redeemed on November 1,2025: 27%
Required:
1. Prepare an amortization schedule for the first 2 years of the bond issue.
2. Prepare the journal entry for the issuance of the bonds on April 1,2024.
3. Prepare the journal entry required on October 1,2024.
4. Prepare the journal entry required on Solar Wave's year end date of December 31,2024.
5. Calculate the gain or loss on the partial redemption of the bonds on November 1,2025.
6. Prepare the journal entries to record the partial redemption of the bonds on November 1,2025.
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