Question $2(37$ marks$)$ Blockbuster Co is building a new state of the art cineplex at a cost of $$3,500,000.$ They received a capital investment of $$1,500,000.$ The remainder of funds will have to be borrowed so they decided to issue bonds. They have issued $10\mathrm{.}5\%,5-$year bonds. These bonds were issued on January $1$st$,2020,$ and pay semi$-$annual interest on July $1$ st and January $1$ st$.$ The bonds yield $10\%.$ The year end is December $31$st $.$ Date Cash Interest Amount unamortized Carrying Value Jan $12011--5,65194,349$ December $31201111,00011,3225,32994,671$ December $31201211,00011,3614,96895,032$ December $31201311,00011,4044,56495,436$ December $31201411,00011,4524,11295,888$ December $31201511,00011,5073,60596,395$ December $31201611,00011,5673,03896,962$ December $31201711,00011,6352,40397,597$ December $31201811,00011,7121,69198,309$ December $31201911,00011,79789499,106$ December $31202011,00011,894-100,000110,000115,651$ Bond Amortization Schedule Rentokil Limited Requirements: $($Show all workings$)$ I. Calculate the proceeds from the sale of the bond. Clearly show the amount of the premium or discount and state two reasons which support the premium or discount calculated. $(5$ marks$)$ II$.$ Prepare a bond amortization schedule for the bond$$s life $(13\mathrm{.}25$ marks$)$ III. Prepare all the journal entries for $2020,2023$ & $2025(15\mathrm{.}25$ marks$)$ IV$.$ Assume that on July $12023,$ Blockbuster Co$.$ retires the bond at a cost of $1,065,000$ plus accrued interest, if applicable. Prepare the journal entry to record this retirement