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Current Attempt in Progress Sheridan Inc. is building a new hockey arena at a cost of $ 2 , 7 5 0 , 0 0

Current Attempt in Progress
Sheridan Inc. is building a new hockey arena at a cost of $2,750,000. It received a down payment of $550,000 from local businesses to
support the project, and now needs to borrow $2,200,000 to complete the project. It therefore decides to issue $2,200,000 of 10-
year, 10.5% bonds. These bonds were issued on January 1,2023, and pay interest annually on each January 1. The bonds yield 10.5%
to the investor and have an effective interest rate to the issuer of 10.40530%.(There is an increased effective interest rate due to the
capitalization of the bond issue costs.) Any additional funds that are needed to complete the project will be obtained from local
businesses. Sheridan paid and capitalized $55,000 in bond issuance costs related to the bond issue. Sheridan prepares financial
statements in accordance with IFRS.
Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.
(a)
Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, calculate the value of the bonds and prepare the journal
entry to record the issuance of the bonds on January 1,2023.(Hint: Refer to Chapter 3 for tips on calculating. For the journal
entry, use the amount arrived at using the time value of money tables.)(Round present value factor calculations to 5 decimal places,
e.g.1.25124 and final answer to 0 decimal places e.g.58,971. Credit account titles are automatically indented when the amount is
entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry
before credit entry.)
Date
Account Titles and Explanation
Jan. 1,
2023
Debit
CreditView Policies
Current Attempt in Progress
Carla Vista Inc. issued $780,000 of 9.25%,19-year bonds on January 1,2023, at 101. Interest is payable semi-annually on July 1 and
January 1. Carla Vista uses the effective interest method of amortization for any bond premium or discount. Assume an effective yield
of 9.00%.(With a market rate of 9.00%, the issue price would be slightly higher. For simplicity, ignore this.)
(a)
Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when the amount is
entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry
before credit entry.)
Date Account Titles and Explanation
Debit
Credit
11?23
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