12% Celine Dion Company issued $1,200,000 10 year bonds on January 1, 2020 at 114.00 Interest is payable semiannually on July 1 and January 1. Dion Company uses the effective interest method of amortization for bond premium or discount. Assume an effective yield of 9.7775% (market interest rate at issurance) Instructions: Prepare the journal entries to record the following. (Round to the nearest dollar.) (a) The issuance of the bonds Jan 1, 20 B (b) The payment of interest and related amortization on July 1, 2020. Jul 1, 20 (c) The accrual of interest and the related amortization on December 31, 2020 1 Dec 31, 20 Venezuela Co. is building a new hockey arena at a cost of $10,000,000 it received a downpayment of $5,000,000 from local businesses to support the project, and now needs to borrow $5,000,000 to complete the project. It therefore decides to issue $5,000,000 of 12.00% -year bonds. These bonds were issued on January 1, 2020, and pay interest annually on each January 1. The bonds yield 8.00% 10 10 Instructions: 11 (a) Prepare the journal entry to record the issuance of the bonds and the related bond issue costs incurred on January 1, 2020 22 (b) Prepare a bond amortization schedule up to and including January 1, 2023, using the effective interest method Interest Paid Interest Expense Premium Amortization Bond Carrying Value Date Jan 1, 20 Jan 1.21 Jan 1, 22 Jan 1, 23 31 (c) Assume that on Jan 2, 2023, Venzuela Co. retires half of the bonds at a cost of 32 plus accrued interest. Prepare the journal entry to record this retirement $3,215,000 Entry for reacquisition