You discovered the notes payable from the bank had not been recorded in $2019$ when your business acquisition was

completed. The terms of the loan were granted on December $1,2019,$ for $$850,000$ at $3\mathrm{.}5\%$ interest for the next $6$ years. The

bank was reasonable to defer interest accruals from January $2020$ through December $2020$ due to the pandemic. Interest

began accruing again, thus your payment terms in $2021$ are two payments of $$100,000$ due semi$-$annually in June and

December $($payments include principal $+$ interest$).$ What are the journal entries required to correct the financial statements?

Note: Your Notes payable acquired following from the company

You decided to raise more capital for your business to help cover the cost of the additional contracts purchased in your

acquisition. Therefore, you issued a bond to raise capital for expansion. Your company also invested in a bond issued by

other entities as part of its investment portfolio. Use the following transactions to record journal entries:

On April $1,2021,$ you issued a $10-$year $$1,000,000$ face value bond at par value with a $5\%$ annual interest rate, payable semi$-$

annually.

On July $1,2021,$ you purchased a $6-$year $$500,000$ face value bond with a $12\%$ annual interest rate issued by XYZ Corporation,

payable annually.

Assume the market rate is $10\%$

On September $30,2021,$ your company paid semi$-$annual interest to bondholders.

Provide the journal entry to record the initial transaction of these bonds at their present value.

Using the previous scenario, create an amortization schedule on both of the bonds. Additionally, provide the journal entries

of the bond's activities for your company's fiscal year $2021$ to be reported on the year$-$end financial statements