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Sheffield Co. is building a new hockey arena at a cost of $2,460,000. It received a downpayment of $500,000 from local businesses to support the

image text in transcribedimage text in transcribedimage text in transcribed Sheffield Co. is building a new hockey arena at a cost of $2,460,000. It received a downpayment of $500,000 from local businesses to support the project, and now needs to borrow $1,960,000 to complete the project. It therefore decides to issue $1,960,000 of 10%,10-year bonds. These bonds were issued on January 1,2019 , and pay interest annually on each January 1 . The bonds yield 9% Prepare the journal entry to record the issuance of the bonds on January 1, 2019. (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.) Prepare a bond amortization schedule up to and including January 1,2023 , using the effective interest method. (Round answers to decimal places, e.g. 38,548.) Assume that on July 1,2022 , Sheffield Co. redeems half of the bonds at a cost of $1,057,800 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.) JI 2 J 2

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