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Continental Company 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
Continental Company 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 11%, callable, 10-year bonds. These bonds were issued on January 2018 and pay interest on January 1 and July 1. The bonds yield 10%.
Instructions:
- Prepare the journal entry to record the issuance of the bonds on January 1, 2018
- Prepare a bond amortixation schedule up to and including January 1, 2022
- Prepare the journal entries to record the interest payments on January 1, 2020 and January 1, 2021.
- Prepare the journal entry to record the bond called on January 2021 at 106
please use excel
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