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Turn this information into an excel sheets with the excel formulas being shown P13.2 (LO 1, 2) (Issuance and Redemption of Bonds) Venezuela Co. is
Turn this information into an excel sheets with the excel formulas being shown
P13.2 (LO 1, 2) (Issuance and Redemption of Bonds) Venezuela Co. is building a new hockey arena at a cost of $2,500,000. It received a down- payment of $500,000 from local businesses to support the project, and now needs to borrow $2,000,000 to complete the project. It therefore decides to issue $2,000,000 of 10.5%, 10-year bonds. These bonds were issued on January 1, 2024, and pay interest annually on each January 1. The bonds yield 10%. Instructions a. Prepare the journal entry to record the issuance of the bonds on January 1, 2024. b. Prepare a bond amortization schedule up to and including January 1, 2028, using the effective-interest method. c. Assume that on July 1, 2027, Venezuela Co. redeems half of the bonds at a cost of $1,065,000 plus accrued interest. Prepare the journal entry to record this redemption.
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