The Star Berhad issued 10%, 10-year bonds with a par value of RM1,000,000 on January 1, 2019, at a selling price of RM885,295 to yield the buyers a 12% return. The company uses the effective interest amortization method. Interest is paid semiannually each June 30 and December 31.

a) Using the above information, describe the types of bond issuance by The Star Berhad. Explain your answer. (4 marks)

b) Prepare journal entries to record the bond issuance on January 1 and the payment of semiannual interest on June 30 and Dec 31, 2019 (Round-off the amount). Please show all workings. (8 marks)

c) Determine the number of bonds payable accounts reported in the Statement of Financial Position on Dec 31, 2019. (3 marks)