Sunland Ltd. sold $6,530,000 of 8% bonds, which were dated March 1, 2020, on June 1, 2020. The bonds paid interest on September 1 and March 1 of each year. The bonds' maturity date was March 1, 2030, and the bonds were issued to yield 10%. Sunland's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2021, Sunland bought back $2,530,000 worth of bonds for $2,430,000 plus accrued interest.
a) Using 1. a financial calculator, or 2. Excel function PV, calculate the issue price of the bonds and prepare the entry for the issuance of the bonds. (Hint: Use the account Interest Expense in your entry). (Round answer to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)