Problem 14-02 Buffalo Co. is building a new hockey arena at a cost of $2,620,000. It received a downpayment of $530,000 from local businesses to support the project, and now needs to borrow $2,090,000 to complete the project. It therefore decides to issue $2,090,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 10%. Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2019. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, I Cash 2,218,421 | T Bonds Payable 2,090,000 Premium on Bonds Pay, 128,421 Your answer is correct. Prepare a bond amortization schedule up to and including January 1, 2023, using the effective interest method. (Round answers to 0 decimal places, e.g. 38,548.) Cash Paid Interest Expense Premium Amortization Carrying Amount of Bonds Date 1/1/19 2218421 229900 8058 2210363 221842 221036 229900 8864 2201500 1/1/20 1/1/21 1/1/22 1/1/23 229900 220150 9750 2191749 229900 219175 10725 2181024 Your answer is partially correct. Try again. Assume that on July 1, 2022, Buffalo Co. redeems half of the bonds at a cost of $1,126,600 plus accrued interest. Prepare the journal entry to record this redemption. (Round answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation July 1, 2022 Interest Expense 109587 TPremium on Bonds Payable 5363 Interest Payable 114950 (To record interest) July 1, 20224 Bonds Payable Premium on Bonds Payable Loss on Redemption of Boi Cash (To record reacquisition)