Pronghorn Co$.$ is building a new hockey arena at a cost of $$2,600,000.$ It received a downpayment of $$460,000$ from local businesses $($b$).$

Prepare a bond amortization schedule up to and including January $1,2028,$ using the effective$-$interest method. $($Round present

value factor to $5$ decimal places, e$.$g$.1\mathrm{.}24356$ and final answers to $0$ decimal places, e$.$g$.38,548.)$ Assume that on July $1,2027,$ Pronghorn Co$.$ redeems half of the bonds at a cost of $$1,126,600$ plus accrued interest. Prepare the

journal entry to record this redemption. $($Round present value factor to $5$ decimal places, e$.$g$.1\mathrm{.}24356$ and final 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

to support the project, and now needs to borrow $$2,140,000$ to complete the project. It therefore decides to issue

$$2,140,000$ of $12\mathrm{.}0\%,10-$year bonds. These bonds were issued on January $1,2024,$ and pay interest annually on each January $1.$ The

bonds yield $11\%.$

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$($a$)$

Your Answer

Correct Answer $($Used$)$

Prepare the journal entry to record the issuance of the bonds on January $1,2024.($Round present value factor calculations to $5$

decimal places, e$.$g$.1\mathrm{.}25124$ 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 O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.

List all debit entries before credit entries.$)$

Credit

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