Banting Best Pharmaceuticals Ltd. is a large commercial insulin producer, with a number of manufacturing facilities across Canada. To finance the additional real estate and production facilities necessary to meet the increasing global demand for the company’s products, the company decided to issue bonds. On May 1, 2020, it issued 20-year, semi-annual bonds with a face value of $100 million. The contract rate on the bonds was 10.2% and the bonds were issued at 95.5 to yield 10.75%. Interest payments are to be made each October 31 and April 30.

Required

a. Determine the missing amounts in the bond amortization schedule below:

b. Provide the journal entries to record the interest payments of October 31, 2021. Ignore year-end accruals of interest.

c. What amount will be reported for the bond liability on the company’s statement of financial position as at December 31, 2021?

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Amortization of Bond Discount Bond Discount Balance of Carrying Value of Bonds Interest Expense Interest Payment Date May 1, 2020 Oct. 31, 2020 $4,500,000 $4,466,875 $4,431,970 $4,395,188 (1) (2) Apг. 30, 2021 | $5,100,000 Oct. 31, 2021 $5,100,000 $5,136,782 Apr. 30, 2022 $5,100,000 $5,138,759 $5,133,125 (3) $95,533,125 $33,125 $34,905 (4) $38,759 $95,568,030 $95,604,812 (5) $4,356,429