Venezuela Co. is building a new hockey arena at a cost of $2,678,000. It received a downpayment of $507,700 from local businesses to support the project, and now needs to borrow $2,170,300 to complete the project. It therefore decides to issue $2,170,300 of 11%, 10 year bonds. These bonds were issued on January 1, 2013, and pay interest annually on each January 1. The bonds yield 10%. Venezuela paid $67,600 in bond issue costs related to the bond sale. (a) Prepare the journal entry to record the issuance of the bonds and the related bond issue costs incurred on January 1, 2013. (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.)

Date Account Titles and Explanation Debit Credit January 1, 2013

(b) Prepare a bond amortization schedule up to and including January 1, 2017, using the effective interest method. (Round answers to 0 decimal places, e.g. 38,548.)

Date Cash Paid Interest Expense Premium Amortization Carrying Amount of Bonds 1/1/13 $ $ $ $ 1/1/14 1/1/15 1/1/16 1/1/17

(c) Assume that on July 1, 2016, Venezuela Co. redeems half of the bonds at a cost of $1,151,540 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.)

Date Account Titles and Explanation Debit Credit July 1, 2016 (To record entry for accrued interest (Bonds Reacquired) July 1, 2016 (To record entry for bond issue costs (Bonds Reacquired) July 1, 2016 (To record reacquisition)