Business, 10.12.2021 22:00 raeanparker

Use the following information for all questions related to McGill College. McGill would like to build a new gym for its campus and decides to issue bonds in order to raise money. On January 1st, Year 1, McGill issues a four-year, $10,000 face value bond with a 6% stated annual interest rate. Interest is payable semi-annually on the last day of June and the last day of December. The market annual interest rate is 8%.
a. Calculate the issue price of McGill's bond.
b. Calculate the carrying value of the bond on the last day of June, Year 2, after all adjusting entries have been made.
c. McGill received a huge donation from a famous hockey player for the new gym, and so they decide to retire the bond early. On December 31st, Year 2, McGill records all adjusting entries and then pays $9,700 to the bondholder to retire the bond. Answer the following questions related to the journal entry McGill will make related to the bond's retirement.
McGill will debit Bond Payable forMcGill will debit Bond Premium forMcGill will debit Loss on Bond Call forMcGill will credit Gain on Bond Call forMcGill will credit Bond Discount forMcGill will credit Cash for

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