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Unsure on how to do part b. Can you please show how you get the numbers- Thank you! Problem 14-02 (Part Level Submission) Sheffield Co.
Unsure on how to do part b. Can you please show how you get the numbers- Thank you!
Problem 14-02 (Part Level Submission) Sheffield Co. is building a new hockey arena at a cost of $2,620,000. It received a downpayment of $480,000 from local businesses 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%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 11%. (a) Your answer is correct. 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 o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, 2019 Cash 2266054.56 Premium on Bonds Pay 126054.56 Bonds Payable 2140000 SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT Attempts: 1 of 5 used (b) Prepare a bond amortization schedule up to and including January 1, 2023, using the effective interest method. (Round answers to 0 decimal places, e.g. 38,548.) Carrying Cash Interest Premium Amount of Date Paid Expense Amortization Bonds 1/1/19 1/1/20 1/1/21 1/1/22 1/1/23Step by Step Solution
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