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Problem 14-4 Tamarisk Inc. is building a new hockey arena at a cost of $2,850,000. It received a down payment of $570,000 from local businesses

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Problem 14-4 Tamarisk Inc. is building a new hockey arena at a cost of $2,850,000. It received a down payment of $570,000 from local businesses to support the project, and now needs to borrow $2,280,000 to complete the project. It therefore decides to issue $2,280,000 of 10-year, 10.50% bonds. These bonds were issued on January 1, 2017 and pay interest annually on each January 1, The bonds yield 10% to the investor and have an effective interest rate to the issuer of 10.4053%. (There is an increased effective interest rate due to the capitalization of the bond issue costs.) Any additional funds that are needed to complete the project will be obtained from local businesses. Tamarisk Inc. paid and capitalized $57,000 in bond issuance costs related to the bond issue. Tamarisk prepares financial statements in accordance with IFRS Click here to view the factor table. Using time value of money tables, a financial calculator, and computer spreadsheet functions, calculate the value of the bonds and prepare the journal entry to record the issuance of the bonds on January 1, 2017. (For the journal entry, use the amount arrived at using the time value of money tables.) (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry for the account tities and enter O for the amounts.) Prepare a bond amortization schedule up to and including January 1, 2022 using the effective interest method. (Round answers to O decimal places, e.g. S,275.) Assume that on July 1, 2020, the company retires half of the bonds at a cost of $1,214,000 plus accrued interest. Prepare the journal entries to record this retirement. (Round answer to O decimal places, e.g 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the

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