Question: Question 2 (11 points) McPhee Ltd. issued a $700,000 4% 5 year bond on October 1, 2020 to yield 5%. The bond was originally dated

Question 2 (11 points) McPhee Ltd. issued a $700,000 4% 5

Question 2 (11 points) McPhee Ltd. issued a $700,000 4% 5 year bond on October 1, 2020 to yield 5%. The bond was originally dated January 1, 2020 and pays interest annually on December 31. The company uses the effective interest method of amortization and has a December 31 year end. Round all dollar amounts to the nearest dollar. Required: Show and label your work. a. Record the issuance of the bond on October 1, 2020. (8 marks) b. Record the entry required on December 31, 2020

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