Volta Desalination Ltd. needed to raise $150 million of additional capital to finance the design, development, and construction of its water desalination facility. Volta decided to issue bonds that pay interest of $2,250,000 on each of March 31 and September 30 and that will reach maturity on September 30, 2033. The bonds were issued at 94.4 on October 1, 2020, for $141.6 million, which represented a yield of 3.54%.

Required

a. Has Volta Desalination raised enough funds to start the development and construction of the water desalination facility? Explain why or why not.

b. Show the journal entry to record the issuance of the bonds.

c. Show the journal entries to record the first two interest payments. Ignore year-end accruals of interest.

d. Assuming Volta Desalination has a year end of December 31, what amount will be reported on the statement of financial position at December 31, 2020, related to these bonds?