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Problem 14-2 (Part Level Submission) Martinez Co. is building a new hockey arena at a cost of $2,420,000. It received a downpayment of $540,000 from local businesses to support the project, and now needs to borrow $1,880,000 to complete the project. It therefore decides to issue $1,880,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 10%. Assume that on July 1, 2019, Martinez Co. redeems half of the bonds at a cost of $1,040,600 plus 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 o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation July 1, 2019 Bonds Payabl Premium on B cash (To record interest) July 1, 2019 Bonds Payabl Premium on B Loss on Rede cash (To record reacquisition) (a) Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2016. Credit Date Account Titles and Explanation January 1, 2016 Cash Debit 1995518 Bonds Payabl 1880000 Premium on B 115518 (b) Your answer is correct. Prepare a bond amortization schedule up to and including January 1, 2020, using the effective interest method. (Round answers to o decimal places, e.g. 38,548.) Cash Interest Expense Date Carrying Amount of Bonds Premium Amortization 1/1/16 0 1995518 199552 7248 1988270 198827 7973 1980297 1/1/17 1/1/18 1/1/19 1/1/20 206800 206800 206800 206800 198030 8770 1971526 197153 9647 1961879