Question $10[28$ points$]$

XYZ Co$.$ issues $$900,000$ of $9\mathrm{.}50\%$ bonds on July $1,2020.$ Additional information on the bond issue is as follows:

Bond date January $1,2020$

Maturity date

January $1,2030$

Yield rate

$12\%$

Interest payment dates June $30,$ December $31$

Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd$/$mmm $($ie$.$ Jarnuary $15$ would be $\frac{15}{J}an).$ Please make sure your final answer$($s$)$ are accurate to $2$ decimal places.

a$)$ Record the bond issue and the first interest payment under the effective$-$interest method.

$\backslash$table$[[,$General Journal,Page G$1],[$Date$,$Account$/$Explanation$,$PR$,$Debit,Credit,,$],[++-,,,,,,],[+-,,,,,,],[+-,,,,,,]]$

b$)$ On November $1,2025,$ the company called and cancelled $35\%$ of the bonds for the market price of $103$ plus accrued interest. Record the entry for the sale of the bond. $($Note: interest was paid on June $30,2025).$

$\backslash$table$[[$General Journal,Page G$1],[$Date$,$Account$/$Explanation$,$PR$,$Debit,Credit,,$],[+,,,,,,],[+,,,,,,]]$

c$)$ Record the interest entry on December $31,2025,$ on the remaining bonds.