PROBLEM 2 (20 POINTS) VERSION 5 On January 1, Y3, Aylmer Corp. issued $5,055,000 face value, 2%, 2-year bonds, with interest payable semi-annually on July 1 and January 1. The bonds were issued to provide the bondholders with a 4% yield. Aylmer uses the effective interest method of amortizing the premium or discount. REQUIRED: a. Determine the present value of the bond. b. Prepare a schedule of bond amortization. c. Prepare the journal entry to record the issue of the bond on January 1, Y3. d. Prepare the journal entry for to record the interest and amortization on July 1, Y3. e. Prepare the adjusting entry to record the interest accrued and amortization on December 31, Y3, the end of the fiscal year. f. Prepare the journal entry to record the early retirement of all the bonds on July 1, Y4. They were called at 105. Round all values to the nearest dollar. a b SCHEDULE OF BOND INTEREST AND AMORTIZATION (AS NECESSARY): Schedule of Bond Discount Amortization 1 Date 2 Cash 3 Interest Expense 4 Difference 5 Carrying Value C Date Account Name Debit Credit d Date Account Name Debit Credit e Date Account Name Debit Credit f Date Account Name Debit Credit