Goodall Co. is building a new soccer stadium at a cost of $2,400,000. It received a downpayment of $460,000 from local businesses to support the project, and now needs to borrow $1,940,000 to complete the project. It therefore decides to issue $1,940,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1 (first payment starting January 1, 2017). The bonds yield 10%. Instructions

(a) Prepare the journal entry to record the issuance of the bonds on January 1, 2016. Consider the following present value factors: ! PV$ n=10, 11% 0.35218 ! PV$ n=10, 10% 0.38554 ! PVOA n=10, 11% 5.88920 ! PVOA n=10, 10% 6.14457

(b) Prepare a bond amortization schedule up to and including January 1, 2020, using the effective-interest method. Include appropriate column headers in the schedule.

(c) Assume that on July 1, 2019, Goodall Co. redeems half of the bonds at a cost of $1,050,400 plus accrued interest. Calculate the gain or loss on this redemption (show all work). (d) Prepare the all journal entries to record the July 1, 2019 retirement.