P14.2 (LO1, 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 therefore decides to issue $2,000,000 of 10.5%, 10-year bonds. These bonds were issued on January 1, 2018, and pay interest annually on each January 1 . The bonds yield 10%. a. Interest expense (credit balance) b. Bond issue costs c. Gain on repurchase of debt. d. Mortgage payable (payable in equal amounts over next 3 years). e. Debenture bonds payable (maturing in 5 years). f. Notes payable (due in 4 years) g. Income bonds payable (due in 3 years) P14.2 (LO1, 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 therefore decides to issue $2,000,000 of 10.5%, 10-year bonds. These bonds were issued on January 1, 2018, and pay interest annually on each January 1 . The bonds yield 10%. a. Interest expense (credit balance) b. Bond issue costs c. Gain on repurchase of debt. d. Mortgage payable (payable in equal amounts over next 3 years). e. Debenture bonds payable (maturing in 5 years). f. Notes payable (due in 4 years) g. Income bonds payable (due in 3 years)