Problem 14-2 (Part Level Submission)

Larkspur Co. is building a new hockey arena at a cost of $2,730,000. It received a downpayment of $470,000 from local businesses to support the project, and now needs to borrow $2,260,000 to complete the project. It therefore decides to issue $2,260,000 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%.

Part C

Assume that on July 1, 2019, Larkspur Co. redeems half of the bonds at a cost of $1,193,900 plus accrued interest. Prepare the journal entry to record this redemption.

Your answer is partially correct. Try again Assume that on July 1, 2019, Larkspur Co. redeems half of the bonds at a cost of $1,193,900 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 T[Interest Payable 62150 Cash 62150 No Entry 0 0 (To record interest) July 1, 2019 Bonds Payable 1130000 Premium on Bonds Payable 63900 Cash 1193000 No Entry 0 0 (To record reacquisition)