Xing Corp. has a $31$ December year$-$end and adopts IFRS for financial reporting.

The following data relate to bonds issued by Xing Corp:

Bond issue date: $1$ January $20$X$6$

Total face value: $$100,000$

Stated interest rate: $7\%$

Effective interest rate: $6\%$

Interest payment date: $31$ December

Bond maturity date: $31$ December $20$X$10$

Required:

$1.$ Prepare an amortization table using the effective interest method.

$2.$ Provide all the required journal entries for the bonds for $20$X$6$ using the effective interest method.

$3.$ $$30,000$ of the bond face value is repurchased on $1$ April $20$X$7$ at a price of $90.$ Provide the entries to update the bond

accounts in $20$X$7.$

$4.$ How does the retirement of a portion of the bonds affect the accounting for the remaining bond issue that is not retired?

$5.$ Refer to your answer to requirement $3$ above. Explain why a gain or loss arose on retirement.