14-2 (Part Level Submission)

ConcordCo. is building a new hockey arena at a cost of $2,600,000. It received a downpayment of $460,000from local businesses to support the project, and now needs to borrow $2,140,000to complete the project. It therefore decides to issue $2,140,000of12%,10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield11%.

Assume that on July 1, 2019, Concord Co. redeems half of the bonds at a cost of $1,143,800plus accrued interest. Prepare the journal entry to record this redemption.(Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)