Answer THREE questions ONLY QUESTION 1 - 25 MARKS Barbados Universities Inc., is an entity seeking to raise $124,500 for an internal project. They wish to successfully issue 3-year bonds. It has a December 31 year end. Following is the partial amortization schedule for the bond issuance: Year Cash Paid Interest Expense Amount Amortized Carrying Amount 01/01/2019 137,665.90 04/01/2019 20% 2,753.32 3,735.00 981.68 136,684.22 07/01/2019 3,735.00 2,733.68 1,001.32 135,682.90 10/01/2019 3,735.00 2,713.66 1,021.34 134,661.56 12/31/2019 3,735.00 2,693.23 1,041.77 133,619.79 04/01/2020 3,735.00 2,672.40 1,062.60 132,557.19 07/01/2020 3,735.00 2,651.14 1,083.86 131,473.33 10/01/2020 3,735.00 124 500 2,629.47 1,105.53 130,367.80 12/31/2020 3,735.00 2,607.36 1,127.64 129,240.15 3735 (e) Assuming that interest is paid on January 1 only, prepare the necessary journal entries for the periods December 2020 and January 2021. The entity does not use reversing entries. (5 marks) (1) Assume that Barbados Universities Inc. found a better fund option, and decided to retire the bonds as at December 31, 2020 at a cost of $129,000. Prepare the journal entry needed to record the bond retirement only. (4 marks) 27