P14.2 (LO 1, 3) (Issuance and Retirement of Bonds) Venzuela Co. is building a new hockey arena at a cost of $2,500,000. It received a down payment of $500,000 from local businesses to support the project and now needs to borrow $2,000,000 to complete the project. It decides to issue $2,000,000 of 10.5%, 10-year bonds. These bonds were issued on January 1, 2021, and pay interest annually on each January 1. The bonds yield 10%. Instructions a. Prepare the journal entry to record the issuance of the bonds on January 1, 2021. b. Prepare a bond amortization schedule up to and including January 1, 2025. e. Assume that on July 1, 2024, 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.

P14.2) (LO 1, 3) (Issuance and Retirement of Bonds) Venzuela CO0, is building a new hockey arena at a cost of $2.500,000. It received a down payment of $500,000 from local businesses to support the project and now needs to borrow $2,000,000 to complete the project. It decides to issue $2,000,000 of 10.5%,10year bonds. These bonds were issued on January 1, 2021, and pay interest annually on each. January 1 . The bonds yield 10%. Instructions a. Prepare the journal entry to record the issuance of the bonds on January 1, 2021. b. Prepare a hond amortization schedule up to and including January 1, 2025. c. Assume that on July 1, 2024, Venzuela Co. retires half of the honds at a cost of $1,065,000 plus aecrued interest. Prepare the jourmal entry to record this retirement