QUESTION #$1(28$ Marks $|35$ Minutes$)$

On October $1,2024,$ Lina Corporation sold $10-$year, $9\%$$$600,000$ bonds. The bonds pay interest on April $1$ st and October $1$ st each year. The

bonds yield of $11\%$ and are to be accounted for using the effective$-$interest method. Lina Corporation's year$-$end is December $31$st$.$

Required:

a$)$ Calculate the present value of the bonds and prepare a bond amortization schedule through to October $1,2034.(14$ marks$)$

b$)$ Prepare all required journal entries from October $1,2024$ to April $1,2026.(14$ marks$)$

$13$

$14$ Be sure to show all of your work and calculations! You may round all calculations to ZERO $(0)$ decimal places, except for INTEREST RATE

$15$ amounts $-$ please use TWO $(2)$ decimal places for any INTEREST RATES!