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Question 1(10 marks) On July 1,2022, Forest Corp. issued $1,000,000 of 6%(payable each...

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Accounting

Question 1(10 marks)
On July 1,2022, Forest Corp. issued $1,000,000 of 6%(payable each June 30 and December 31),5-year December 2023 at an effective rate of 3%. Because the company had available cash, half of the bonds were purchased in the market and retired on January 1,2024 at 103. Show your calculations (calculator inputs).
Required:
a) Calculate the issue price of the bonds by Forest Corp. on July 1,2022.
b) Calculate the book (carrying value) of the bonds on December 31,2023.
\table[[Period,\table[[Interest],[Expense]],\table[[Interest],[Paid]],Amortization,\table[[Ending],[Balance]]],[,,,,],[,,,,],[,,,,]]
c) Besides having some available cash, explain one reason why Forest might want to retire their bonds.
d) Give the entry by Forest Corp. to record the retirement of the bonds on January 1,2024.
General Journal
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