Problem 14 2 Marigold Co is building a new hockey arena at a cost of $2,430,000 It received a downpayment of $490,000 from local businesses to support the project, and now needs to borrow $1,940,000 to complete the project It therefore decides to issue $1,940,000 of 11 , 10 year bonds These bonds were issued on January 1, 2016, 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, 2016 (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 0 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, 2016 Cash 2059199 Bonds Payable 1940000 Premium on Bonds Payable 119199 Your answer is incorrect Try again Prepare a bond amortization schedule up to and including January 1, 2020, using the effective interest method (Round answers to 0 decimal places, e g 38,548 ) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Your answer is incorrect Try again Assume that on July 1, 2019, Marigold Co redeems half of the bonds at a cost of $1,049,200 plus accrued interest Prepare the journal entry to record this redemption (Round answers to 0 decimal places, e g 38,548 If no entry is required, select No Entry for the account titles and enter 0 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, 2019 (To record interest) July 1, 2019 (To record reacquisition) Click if you would like to Show Work for this question Open Show Work

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Problem 14-2 Marigold Co. is building a new hockey arena at a cost of $2,430,000. It received a downpayment of $490,000 from local businesses to

Problem 14-2

Marigold Co. is building a new hockey arena at a cost of $2,430,000. It received a downpayment of $490,000 from local businesses to support the project, and now needs to borrow $1,940,000 to complete the project. It therefore decides to issue $1,940,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2016, 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, 2016. (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 0 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, 2016	Cash	2059199
	Bonds Payable		1940000
	Premium on Bonds Payable		119199


	Your answer is incorrect. Try again.

Prepare a bond amortization schedule up to and including January 1, 2020, using the effective interest method. (Round answers to 0 decimal places, e.g. 38,548.)

SHOW LIST OF ACCOUNTS

LINK TO TEXT


	Your answer is incorrect. Try again.

Assume that on July 1, 2019, Marigold Co. redeems half of the bonds at a cost of $1,049,200 plus accrued interest. Prepare the journal entry to record this redemption. (Round answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)