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Venezuela Co. is building a new hockey arena at a cost of $2,500,000. It received a downpayment of $500,000 from local businesses to support the
Venezuela Co. is building a new hockey arena at a cost of $2,500,000. It received a downpayment 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 is 10% Building Downpayment Borrowing Bonds Every January 1 Bond Yield $2,500,000 $500,000 $2,000,000 10 years 10% (a) Prepare the journal entry to record the issuance of the boonds on 1-Jan-24 Date Cash Paid Interest Expense Premium Amortization 1/1/24 1/1/25$210,000.00 1/1/26$210,000.00 1/1/27$210,000.00 1/1/28$210,000.00 (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. Side Question, how do I calculate the PVF on excel? Venezuela Co. is building a new hockey arena at a cost of $2,500,000. It received a downpayment 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 is 10% Building Downpayment Borrowing Bonds Every January 1 Bond Yield $2,500,000 $500,000 $2,000,000 10 years 10% (a) Prepare the journal entry to record the issuance of the boonds on 1-Jan-24 Date Cash Paid Interest Expense Premium Amortization 1/1/24 1/1/25$210,000.00 1/1/26$210,000.00 1/1/27$210,000.00 1/1/28$210,000.00 (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. Side Question, how do I calculate the PVF on excel
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