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Intermediated AccountingII Week 4 ..14-2 Part level (QC) Hello, Can you help me resolve the attached problem for QC? Thank you Problem 14-2 (Part Level
Intermediated AccountingII Week 4 ..14-2 Part level (QC)
Hello,
Can you help me resolve the attached problem for QC?
Thank you
Problem 14-2 (Part Level Submission) Coronado Co. is building a new hockey arena at a cost of $2,750,000. It received a downpayment of $470,000 from local businesses to support the project, and now needs to borrow $2,280,000 to complete the project. It therefore decides to issue $2,280,000 of 10%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 9%. Don't show me this message again for the assignment (a) Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2016. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. 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 January 1, 2016 Account Titles and Explanation Cash Debit 2426307.6 Bonds Payable Premium on Bo Don't show me this message again for the assignment Show List of Accounts Show Solution Show Answer Link to Text Link to Text Credit 2280000 146307.6 Attempts: 1 of 3 used (b) Your answer is correct. Prepare a bond amortization schedule up to and including January 1, 2020, using the effective interest method. (Round answers to 0 decimal places, e.g. 38,548.) Cash Paid Date $ $ 1/1/16 1/1/17 1/1/18 1/1/19 1/1/20 Premium Amortizatio n Interest Expense 0 0 228000 218367.68 228000 217500.78 228000 216555.85 228000 215525.87 Carrying Amount of Bonds $ $ 0 9632.32 10499.22 11444.15 12474.13 2426307.60 2416675.28 2406176.06 2394731.90 2382257.78 Don't show me this message again for the assignment Show List of Accounts Show Answer Link to Text Link to Text Attempts: 1 of 3 used (c) Assume that on July 1, 2019, Coronado Co. redeems half of the bonds at a cost of $1,222,500 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, 2019 (To record interest) July 1, 2019 (To record reacquisition) Debit CreditStep by Step Solution
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