Swifty Co. is building a new hockey arena at a cost of $2,680,000. It received a downpayment of $500,000 from local businesses to support the project, and now needs to borrow $2,180,000 to complete the project. It therefore decides to issue $2,180,000 of 10%, 10-year bonds. These bonds were issued on January 1, 2016, 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, 2016. (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, 2020, using the effective interest method. (Round answers to 0 decimal places, e.g. 38,548.)

Assume that on July 1, 2019, Swifty Co. redeems half of the bonds at a cost of $1,156,700 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.)

List Of Accounts CLOSE Problem 14-2 Accumulated Depreciation-Equipment / Accumulated Depreciation-Machinery / Allowance for Doubtful Accounts/ Bad Debt Expense / Bond Issue Expense / Bonds Payable / Buildings / Cash / Common Stock / Debt Investments / Depreciation Expense / Discount on Bonds Payable / Discount on Notes Payable / Discount on Notes Receivable / Equipment / Equity Investments / Gain on Disposal of Machinery / Gain on Disposal of Land / Gain on Disposal of Plant Assets / Gain on Redemption of Bonds / Gain on Restructuring of Debt / Gain on Sale of Machinery / Interest Expense / Interest Payable / Interest Receivable / Interest Revenue / Land Loss on Disposal of Land / Loss on Redemption of Bonds / Machinery / Mortgage Payable / No Entry / Notes Payable / Notes Receivable / Paid-in Capital in Excess of Par - Common Stock / Paid-in Capital in Excess of Par - Preferred Stock / Premium on Bonds Payable / Sales Revenue / Unamortized Bond Issue Costs / Unearned Revenue / Unearned Sales Revenue / Unrealized Holding Gain or Loss - Income