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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 businesses to support the project,
Venezuela Co. is building a new hockey arena at a cost of $20,000,000 . It received a downpayment of $8,000,000 businesses to support the project, and now needs to borrow $12,000,000 the project. It therefore decides to issue $12,000,000 of 12.00% -year bonds. These bonds were issued on January 1, 2020, and pay interest annually on each January 1. The bonds yield 8.00% from local to complete 10 Instructions: (a) Prepare the journal entry to record the issuance of the bonds and the related bond issue costs incurred on January 1, 2020. Jan 1, 20 Cash 15,220,944 Premiem on Bonds Payable Bonds Payable 3,220,944 12,000,000 (b) Prepare a bond amortization schedule up to and including January 1, 2023, using the effective interest method Date Jan 1, 20 Jan 1, 21 Jan 1, 22 Jan 1, 23 Interest Interest Paid Expense 1,440,000 1,440,000 $1,217,675.52 1,440,000 $1,199,889.56 1,440,000 $1,180,680.73 Premium Bond Amortizatio Carrying n Value $15,220,944.00 222,324.48 $14,998,619.52 240,110.44 $14,758,509.08 259,319.27 $14,499,189.81 $8,000,000 (c) Assume that on Jan 1, 2023, Venzuela Co. retires half of the bonds at a cost of plus accrued interest. Prepare the journal entry to record this retirement. Entry for reacquisition Help with C, please
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