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nt Liabilities P14.2 (LO1,3) (Issuance and Retirement of Bonds) Venzuela Co. is building a new at a cost of $2,500,000. It received a down payment
nt Liabilities P14.2 (LO1,3) (Issuance and Retirement of Bonds) Venzuela Co. is building a new at a cost of $2,500,000. It received a down payment of $500,000 from local busine the project and now needs to borrow $2,000,000 to complete the project. It therefore deci $2,000,000 of 10.5%, 10-year bonds. These bonds were issued on January 1, 2018, and pay interest an nually on each January 1 . The bonds yield 10%. sses to support es to issue Instructions a. Prepare the journal entry to record the issuance of the bonds on January 1, 2018. b. Prepare a bond amortization schedule up to and including January 1, 2022. c. Assume that on July 1, 2021, Venzuela Co. retires half of the bonds at a cost of $1.065.000 plus accrued interest. Prepare the journal entry to record this retirement
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