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Sheridan 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

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Sheridan 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%. 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 decimal places e.g. 58,971. If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation January 1, 2016 Cash Premium on Bonds Payable ds Payable Bonds Payable SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare a bond amortization schedule up to and including January 1, 2020, using the effective interest method. (Round answers to O decimal places, e.g. 38.548.) Cash Paid Interest Expense Date Carrying Amount of Bonds Premium Amortization 1/1/16 1/1/20 Prepare a bond amortization schedule up to and including January 1, 2020, using the effective interest method. (Round answer O decimal places, e.g. 38,548.) Cash Interest Expense Premium Amortization Carrying Amount of Bonds Date 1/1/16 1/1/17 1/1/18 1/1/19 1/1/20 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Assume that on July 1, 2019, Sheridan 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 decimal places, e.g. 38,548. If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation July 1, 2019 (To record interest) July 1, 2019 (To record reacquisition)

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