Problem 142 Wildhorse Co. is building a new hockey arena at a cost of $2,620,000, It received a downpayment of $450,000 from local businesses to support the project, and now needs to borrow $2,170,000 to complete the project. It therefore decides to issue $2,170,000 of 11%, 10ryear bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 10%. - journal entry to record the issuance of the bonds on January 1, 2016 January 1 2016 account debit credit Cash ? Premium bonds on payable ? Bonds payable 2120000 bond amortization schedule up to and including January 1, 2020, using the effective interest method. Date Cash paid Interest exp. Premium Carrying amortization amount of bonds 1-1-16 ? 0 JD VIC