.................................................................

Problem 14-2

Sage Co. is building a new hockey arena at a cost of $2,310,000. It received a downpayment of $490,000 from local businesses to support the project, and now needs to borrow $1,820,000 to complete the project. It therefore decides to issue $1,820,000 of 12%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 11%.

[Partially correct answer.] Your answer is partially correct. Try again.

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 [Entry field with correct answer] [Entry field with incorrect answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with correct answer] [Entry field with incorrect answer]

LINK TO TEXT LINK TO TEXT

[Incorrect answer.] 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.)

Date Cash Paid Interest Expense Premium Amortization Carrying Amount of Bonds 1/1/16 $ [Entry field with incorrect answer] $ [Entry field with incorrect answer] $ [Entry field with incorrect answer] $ [Entry field with incorrect answer] 1/1/17 [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] 1/1/18 [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] 1/1/19 [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] 1/1/20 [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer]

LINK TO TEXT LINK TO TEXT

[Incorrect answer.] Your answer is incorrect. Try again.

Assume that on July 1, 2019, Sage Co. redeems half of the bonds at a cost of $1,001,900 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 [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] (To record interest) July 1, 2019 [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] [Entry field with incorrect answer] (To record reacquisition)

................................................................