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.

Date Account Titles and Explanation Debit Credit uly 1, 2019 (To record interest) July 1, 2019 To record reacquisition) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT