3 A) Lubambe Copper mine is developing a new gold mine at a cost of K7, 500,000. It received a down payment of K1, 500,000 from its shareholders to support the project and now needs to borrow K6, 000,000 to complete the project. It decides to issue K6,000,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2021, and pay interest annually in arrears each December 31. The bonds yield 10%. Required Page 3 of 5 i). Prepare the journal entry to record the issuance of the bonds on January 1, 2021. (6 marks) ii). Prepare a bond amortization schedule up to December 31, 2025(5 marks). iii). Assume that on January 1, 2024, Lubambe retires all the bonds at a cost of K5, 500,000 and pays this amount cash. Prepare the journal entry to record this retirement (4 marks) Question 3 A) Lubambe Copper mine is developing a new gold mine at a cost of K7, 500,000. It received a down payment of K1, 500,000 from its shareholders to support the project and now needs to borrow K6, 000,000 to complete the project. It decides to issue K6,000,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2021, and pay interest annually in arrears each December 31. The bonds yield 10%. Required Page 3 of 5 i). Prepare the journal entry to record the issuance of the bonds on January 1, 2021. (6 marks) ii). Prepare a bond amortization schedule up to December 31, 2025(5 marks). iii). Assume that on January 1, 2024, Lubambe retires all the bonds at a cost of K5, 500,000 and pays this amount cash. Prepare the journal entry to record this retirement (4 marks)