Wishful Thinking (WT) School of Management is building a new facility on a piece of donated...

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Wishful Thinking (WT) School of Management is building a new facility on a piece of donated land. It received a generous cash donation from a local business to support the project, and now needs to borrow $6,000,000 to complete the project. Therefore, WT School of Management issued $6,000,000 of 7.00% 7-year bonds. These bonds were issued on January 1, 2022, and pay interest annually on each January 1. The bonds yield (at the time of issuance) is 5.00%. WT School of Management incurred $240,000 in bond issue costs related to the bond sale. Instructions: a. Prepare the journal entry to record the issuance of the bonds and the related bond issue costs incurred on January 1, 2022 (14 points, show your work). b. Prepare a bond amortization schedule up to and including January 1, 2025, using the effective interest method (10 points). c. Assume that on July 1, 2024, WT School of Management retires half of the bonds at a cost of $2,700,000 plus accrued interest. Prepare the journal entry to record this retirement (16 points, show your work). Wishful Thinking (WT) School of Management is building a new facility on a piece of donated land. It received a generous cash donation from a local business to support the project, and now needs to borrow $6,000,000 to complete the project. Therefore, WT School of Management issued $6,000,000 of 7.00% 7-year bonds. These bonds were issued on January 1, 2022, and pay interest annually on each January 1. The bonds yield (at the time of issuance) is 5.00%. WT School of Management incurred $240,000 in bond issue costs related to the bond sale. Instructions: a. Prepare the journal entry to record the issuance of the bonds and the related bond issue costs incurred on January 1, 2022 (14 points, show your work). b. Prepare a bond amortization schedule up to and including January 1, 2025, using the effective interest method (10 points). c. Assume that on July 1, 2024, WT School of Management retires half of the bonds at a cost of $2,700,000 plus accrued interest. Prepare the journal entry to record this retirement (16 points, show your work).