ACG 3113 Intermediate Financial Excel Assignment Assignment: Star Center Co. is building a new music arena at a cost of $5,600,000. It received a down payment of $600,000 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 8%, 20-year bonds. These bonds were issued on January 1, 2019 and pay interest annually on each January 1. The bonds yield 10%. Required: Using an Excel worksheet (a) Prepare the journal entry to record the issuance of the bonds and the related bond issue costs incurred on January 1,2019. Use Excel functions to calculate the price of the bonds (use present value formula) on the issue date and to perform all necessary supporting computations.

(b) Prepare a bond amortization schedule up to and including January 1, 2023, using the effective-interest method.

(c) Prepare the journal entry to record the first interest payment made on January 1, 2020.

(d) Assume that on July 1, 2022, Star Center Co. retires 60% of the bonds at a cost of $2,040,000 plus accrued interest. Prepare the journal entry to record this retirement. Make sure you include supporting computations.