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Novak Ltd. sold $6,430,000 of 10% bonds, which were dated March 1, 2020, on June 1,...

Novak Ltd. sold $6,430,000 of 10% 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 12%. Novak's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2021, Novak bought back $2,430,000 worth of bonds for $2,330,000 plus accrued interest.

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 Payable 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.)

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Excel function DATA Face value of Bonds Contract rate of interest Term of bonds Market rate of interest Interest payment $6,4

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