XYZ company is a well-known property and construction company in the USA. XYZ company has embarked on an expansion plan to increase its income. XYZ issued the following debt security to raise the needed funds. the accounting periods ends on 31 December.

On 1 June 2020, XYZ company issued 12% bonds dated 1 June 2020, with a principal amount of $60,000,000. The bonds will mature on 30 May 2025. On the issuance date, for bonds of similar risk and maturity, the market yield is 10%. interest paid semiannually on 1 June and 1 December. on 1 October 2021 ABC company redeemed half of the bond payable at a price of $30,150,000 including accrued interest.

Required:

1) Prepare the journal entry to record the bond payables. show all computations.

2)Compute the gain/loss on the redemption of bond payable. prepare journal entries to record the redemption of bond payables.

3)Prepare a partial statement of financial position for XYZ company, to show presentation of bond payables as at 31 December 2021. show all computations.