Question: Please show step by step solutions on how to solve/explanations. Thank you! 2. ( 8 points) Sahra Co. issued $2,500,000 of 5%,20-year bonds. These bonds

Please show step by step solutions on how to solve/explanations. Thank you!

2. ( 8 points) Sahra Co. issued $2,500,000 of 5%,20-year bonds. These bonds were issued on January 1,2020, and pay interest annually on January 1 . The bonds yield 3% and were issued at $3,243,884. Required: (a) Prepare the journal entry to record the issuance of the bonds on January 1,2020. (b) Use the effective interest method to Prepare a bond amortization schedule up to and including January 1,2024. (c) Assume that on July 1, 2023, Flex Co. redeems all the bonds at $3,000,000 plus accrued interest. Prepare the journal entries to record this redemption

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