b) Assume that on July 1, 2022, Venezuela Co. redeems half of the bonds, at a cost of $1,065,000 plus accrued interest. Prepare the journal entry to record this redemption.

P14.2 (LO 1, 2) Excel (Issuance and Redemption of Bonds) Venezuela Co. is building a new hockey arena at a cost of $2,500,000. It received a downpayment of $500,000 from local businesses to support the project, and now needs to borrow $2,000,000 to complete the project. It therefore decides to issue $2,000,000 of 10.5%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 10%