Good Evening,

I am trying to finalize my final question in my Unit 5 accounting II course in regards to Long-Term Liabilities. Please note that the document attached, anything in green is a correct answer and anything highlighted in red is an incorrect answer.

Any help will be appreciated.

Thank you,

Katie A. VanLaningham

Venezuela Co. is building a new hockey arena at a cost of $2,793,000. It received a downpayment of $513,100 from local businesses to support the project, and now needs to borrow $2,279,900 to complete the project. It therefore decides to issue $2,279,900 of 11%, 10 year bonds. These bonds were issued on January 1, 2013, and pay interest annually on each January 1. The bonds yield 10%. Venezuela paid $60,800 in bond issue costs related to the bond sale. (a) Prepare the journal entry to record the issuance of the bonds and the related bond issue costs incurred on January 1, 2013. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Date January 1, 2013 Debit Cash Credit 2279900 Unamortize 2279900 Bond Issue 60800 Unamortize 60800 (b) Prepare a bond amortization schedule up to and including January 1, 2017, using the effective interest method. (Round answers to 0 decimal places, e.g. 38,548.) Cash Paid Date 1/1/13 $ Interest Expense $ Premium Amortizatio n $ Carrying Amount of Bonds $ 2171288 1/1/14 225016 217129 7887 2163401 1/1/15 225016 216340 8676 2154725 1/1/16 225016 215473 9543 2145182 1/1/17 225016 214518 10498 2134684 (c) Assume that on July 1, 2016, Venezuela Co. redeems half of the bonds at a cost of $1,200,990 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 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation July 1, 2016 (To record interest) July 1, 2016 (To record reacquisition) Debit Credit