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PinaCo. is building a new hockey arena at a cost of $2,680,000. It received a downpayment of $500,000from local businesses to support the project, and

PinaCo. is building a new hockey arena at a cost of $2,680,000. It received a downpayment of $500,000from local businesses to support the project, and now needs to borrow $2,180,000to complete the project. It therefore decides to issue $2,180,000of10%,10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield9%.

Prepare the journal entry to record the issuance of the bonds on January 1, 2016.

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