Question: Question 2 (7 marks) Power Solutions Lid issued a $825,000, 7% bond on January 1, 2021. At that time, the market rate of interest

Question 2 (7 marks) Power Solutions Lid issued a $825,000, 7% bond

Question 2 (7 marks) Power Solutions Lid issued a $825,000, 7% bond on January 1, 2021. At that time, the market rate of interest is 6%. The bond matures in 6 years and pays interest on June 10th and December 31st. a) Calculate the proceeds of the bond issue. Show your calculator input values b) Prepare the journal entries for the issuance of the bond and the first interest payment. Date General Journal Account Titles and Explanation Debit Credit

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