P14-2 (Issuance and Retirement of Bonds) Venezuela Co. is building a new hockey arena at a cost of $2,500,000 . It received a downpayment of $500,000 from local businesses to support the project, and now needs to borrow $2,000,000 to complete the project. It therefore decides to issue $2,000,000 of 10.50% 10 -year bonds. These bonds were issued on January 1, 2011, and pay interest annually on each January 1. The bonds yield 10.00% . Venezuela paid $50,000 in bond issue costs related to the bond sale. (c) Assume that on July 1, 2014, 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. Hint: Resolve value of unamortized bond issue costs for the bonds being retired. Unamortized bond issue costs Years of bond issue Unamortized bond issue costs per year Unamortized bond issue costs per six months Six month periods to July 1, 2014 Unamortized bond issue costs to July 1, 2014 Formula Remaining unamortorized bond issue costs as of July 1, 2014 Formula Bonds retired as a percentage of bonds issued Percenage Value of remaining unamortized bond issue costs to retired bonds Formula