Question
Problem 14-2 (Part Level Submission) PearlCo. is building a new hockey arena at a cost of $2,620,000. It received a downpayment of $450,000from local businesses
PearlCo. is building a new hockey arena at a cost of $2,620,000. It received a downpayment of $450,000from local businesses to support the project, and now needs to borrow $2,170,000to complete the project. It therefore decides to issue $2,170,000of10%,10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield9%.
the journal entry to record the issuance of the bonds on January 1, 2016?
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Introduction To Financial Accounting
Authors: Charles T Horngren, John A Elliott
9th Edition
0131479725, 978-0131479722
