Problem 14-02 (Part Level Submission) Pearl Co. is building a new hockey arena at a cost of $2,620,000. It received a downpayment of $480,000 from local businesses to support the project, and now needs to borrow $2,140,000 to complete the project. It therefore decides to issue $2,140,000 of 12%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 11%. (a) 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 0 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, 2019 Cash 2266055 Premium on Bonds Pay 126055 Bonds Payable 2140000 SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT Attempts: 1 of 5 used (b) Your answer is correct. Prepare a bond amortization schedule up to and including January 1, 2023, using the effective interest method. (Round answers to o decimal places, e.g. 38,548.) Cash Premium Amortization Carrying Amount of Bonds Interest Expense Date Paid 1/1/19 2266030 1/1/20 256800 249266 7537 2258493 1/1/21 256800 248434 8366 2250127 1/1/22 256800 247514 9286 2240841 1/1/23 256800 246493 10307 2230534 (C) Your answer is partially correct. Try again. Assume that on July 1, 2022, Pearl Co. redeems half of the bonds at a cost of $1,135,200 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.) Date Account Titles and Explanation Debit Credit July 1, 2022 Interest Expense 61623 2577 Premium on Bonds Payable M Cash 64200 (To record interest) July 1, 2022 Bonds Payable 1070000 Premium on Bonds Payable 47844 X Loss on Redemption of Bor 34556 Cash 1152400 (To record reacquisition)