Question $1$

On October $1,2020,$ Rupert Limited sold a $5\%$ seven$-$year, $$30$ million bond at $91\mathrm{.}77,$ providing a yield of $6\mathrm{.}5\%$ annually. Interest is paid annually on September $30.$ On January $1,2023,$ Dunbar retired all the bonds at $105.$ The company$$s year$-$end is December $31.$

Required:

$1.$ Prepare the journal entry to record the issuance of the bond on October $1,2020.$

$2.$ Prepare the journal entry to record interest expense on December $31,2020,$ the payment of interest on September $30,2021$ and the interest expense on December $31,2021,$ assuming the company uses the effective interest method in amortizing any discounts or premiums.

$3.$ Determine the interest expense for $2022.$

$4.$ Prepare the journal entry to record the retirement of the bond on January $1,2023.$