Question: Assignment 1. I. National Co. issued 9% bonds, dated December 1, 2020, with a face amount of $500,000 on December 1, 2020. The bonds

Assignment 1. I. National Co. issued 9% bonds, dated December 1, 2020,

Assignment 1. I. National Co. issued 9% bonds, dated December 1, 2020, with a face amount of $500,000 on December 1, 2020. The bonds mature on November 30, 2024 (4 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 1 and December 1. Required: 1. Determine the price of the bonds at December 1, 2020. 2. Prepare the journal entry to record their issuance by National on December 1, 2020. 3. Prepare an amortization schedule that determines interest at the effective rate each period. 4. Prepare the adjusting journal entry on December 31, 2020. 5. Prepare the journal entry on June 1, 2021. 6. Assume all the bonds are retired at 103 2/8 on June 1, 2022 (after third payment). Prepare the journal entry for the retirement.

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