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Venezuela Co. is building a new hockey arena at a cost of $20,000,000 . It received a downpayment of $8,000,000 from local businesses to support
| Venezuela Co. is building a new hockey arena at a | ||||||
| cost of | $20,000,000 | . It received a downpayment of | $8,000,000 | from local | ||
| businesses to support the project, and now needs to borrow | $12,000,000 | to complete | ||||
| the project. It therefore decides to issue | $12,000,000 | of | 12.00% | 10 | ||
| -year bonds. These bonds were issued on January 1, 2020, and pay interest annually on each | ||||||
| January 1. The bonds yield | 8.00% | . | ||||
| . | ||||||
| (c) Assume that on Jan 1, 2023, Venzuela Co. retires half of the bonds at a cost of | $8,000,000 | |||||
| plus accrued interest. Prepare the journal entry to record this retirement. | ||||||
| Entry for reacquisition | ||||||
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