Problem 14-2 (Part Level Submission) Sheridan Co. is building a new hockey arena at a cost of $2,750,000. It received a downpayment of $350,000 from local businesses to support the project, and now needs to borrow $2,400,000 to complete the project. It therefore decides to issue $2,400,000 of 10%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 9%. (a) 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 O 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.) Account Titles and Explanation Date Debit Credit January 1, 2016 Cash 2554024 Premium on Bonds Payable 154023 Bonds Payable 2400000 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK T T LINK TO XT Attempts: 3 of 15 used (b) Your answer is correct. 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.) Carrying Premium Cash Interest Amount of Date Expense Amortization Bonds Paid 2554024 1/1/16 1/1/17 2543886 240000 229862 10138 1/1/18 2532836 240000 11050 228950 1/1/19 2520791 12045 240000 227955 1/1/20 2507662 240000 226871 13129 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW ANSWER LINK EXT LINK XT Attempts: 2 of 15 used y dgall. Assume that on July 1, 2019, Sheridan Co. redeems half of the bonds at a cost of $1,273,900 plus accrued interest. Prepare the journal entry to record this redemption. (Round ans wers 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.) Account Titles and Explanation Credit Date Debit July 1, 2019 Interest Expense 56718 Premium on Bonds Payable 3282 Cash 60000 (To record interest) July 1, 2019 Bonds Payable 1200000 x Premium on Bonds Payable 50253 Loss on Redemption of Bonds 23647 cash 1273900 (To record reacquisition) Open Show Work Click if you would like to Show Work for this