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Kranco is building a new hockey arena at a cost of $2,620,000 it received a down payment of $450,000 from local businesses to support the
Kranco is building a new hockey arena at a cost of $2,620,000 it received a down payment of $450,000 from local businesses to support the project and now needs to borrow $2,170,000 to complete the project it therefore decides to issue $2,170,000 of 11% 10 year bond these bonds were issued on January 1, 2019 and pay interest annually on each January 1 the bond yield at 10%. assume that on July 1, 2022 Kranco redeems half of the bonds at a cost of $1,139,500 plus accrued interest Prepare the journal entry to record this redemption
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