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Venezuela Inc. issued $2,000,000 5-year bonds at 9%. These bonds were issued on January 1, 2017...

Venezuela Inc. issued $2,000,000 5-year bonds at 9%. These bonds were issued on January 1, 2017 and pay interest on January 1 and July 1. The YTM of the bond is 11%, i.e. the effective interest rate for the company is 11%.

a. Calculate the value of the bonds and prepare the journal entry to record the issuance of the bonds on January 1, 2017.
b. Prepare a bond amortization schedule up to and including January 1, 2022.
c. Assume that on July 1, 2020, the company retires half of the bonds by calling them back at 102%. Prepare the journal entry to record this retirement.

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