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(e) AEL did not have all the cash needed for the project stated in (d) above. To raise capital, the company issued bonds by way

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(e) AEL did not have all the cash needed for the project stated in (d) above. To raise capital, the company issued bonds by way of private placement to a small group of investors. On August 1, 2020, it sold $8,000,000 of 5-year bonds at 92.46. The bonds have a stated interest rate of 9%, and pay interest semi-annually on January 31 and July 31. The company incurred direct costs related to the issue of the bond of $280,010. On August 1, 2024, AEL retired 30% of the bonds at the market price of 99. Required: Prepare the journal entry for the issuance of the bonds on August 1, 2020. Show the bond amortization schedule. Calculate the gain or loss on the partial bond retirement on August 1, 2024, and prepare the journal entry to record this event. Round off the numbers in your answers to the nearest dollar

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