List of Accounts

• Accumulated Depreciation-Equipment
• Accumulated Depreciation-Machinery
• Accumulated Depreciation-Plant and Equipment
• Allowance for Doubtful Accounts
• Bad Debt Expense
• Bond Issue Expense
• Bonds Payable
• Buildings
• Cash
• Common Stock
• Cost of Goods Sold
• Debt Investments
• Depreciation Expense
• Discount on Bonds Payable
• Discount on Notes Payable
• Discount on Notes Receivable
• Equipment
• Equity Investments
• Gain on Disposal of Machinery
• Gain on Disposal of Land
• Gain on Disposal of Plant Assets
• Gain on Redemption of Bonds
• Gain on Restructuring of Debt
• Gain on Sale of Machinery
• Interest Expense
• Interest Payable
• Interest Receivable
• Interest Revenue
• Inventory
• Land
• Loss on Disposal of Equipment
• Loss on Disposal of Land
• Loss on Redemption of Bonds
• Machinery
• Mortgage Payable
• No Entry
• Notes Payable
• Notes Receivable
• Paid-in Capital in Excess of Par - Common Stock
• Paid-in Capital in Excess of Par - Preferred Stock
• Premium on Bonds Payable
• Retained Earnings
• Salaries and Wages Expense
• Sales
• Sales Revenue
• Unamortized Bond Issue Costs
• Unearned Revenue
• Unearned Sales Revenue
• Unrealized Holding Gain or Loss - Equity
• Unrealized Holding Gain or Loss - Income

Indigo Co. is building a new hockey arena at a cost of $2,600,000. It received a downpayment of $460,000 from local businesses to support the project, and now needs to borrow $2,140,000 to complete the project. It therefore decides to issue $2,140,000 of 12%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 11%. (a) Prepare the journal entry to record the issuance of the bonds on January 1, 2019. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation January 1, 2019 eTextbook and Media List of Accounts Save for Later Debit Attempts: 0 of 5 used Credit Submit Answer (b) Prepare a bond amortization schedule up to and including January 1, 2023, using the effective interest method. (Round answers to O decimal places, e.g. 38,548.) Date 1/1/19 1/1/20 1/1/21 1/1/22 1/1/23 $ eTextbook and Media List of Accounts Cash Paid Save for Later $ Interest Expense $ Premium Amortization Attempts: 0 of 5 used $ Carry Amou Bon Submit Answer .(s). Assume that on July 1, 2022, Indigo Co. redeems half of the bonds at a cost of $1,143,800 plus accrued interest. Prepare the journal entry to record this redemption. (Round answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date July 1, 2022 July 1, 2022 Account Titles and Explanation (To record interest) (To record reacquisition) eTextbook and Media Debit 1000 Credit 0000