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, 2016, and pay interest annually on each January 1. The bonds yield 10%.

A) Prepare the journal entry to record the issuance of the bonds on January 1, 2016.

B) Prepare a bond amortization schedule up to and including January 1, 2020, using the effective interest method.

C) Assume that on July 1, 2019, 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.

Your answer is partially correct. Try again. Prepare the journal entry to record the issuance of the bonds on January 1, 2016. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to o 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, 2016 Cash Tuary 1 2011440 Bonds Payable 2000000 Premium on Bonds Payable 11440 LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Prepare a bond amortization schedule up to and including January 1, 2020, using the effective interest method. (Round answers to 0 decimal places, e.g. 38,548.) Cash Paid Date Interest Expense Carrying Amount of Bonds Premium Amortization 1/1/16 2101440 1/1/17 210000 201144 8856 2002584 1/1/18 T 210000 200258 9742 1992842 1/1/19 T 210000 199284 10716 1982127 1/1/20 T 210000 198213 11787 1970339 Your answer is partially correct. Try again. Assume that on July 1, 2019, 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. (Round answers to 0 decimal places, e.g. 38,548. 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 July 1, 2019 Tinterest Expense 49,553 Premium on Bonds Payable 2947 Cash 52500 (To record interest) 2 July 1, 2019 Bonds Payable 1000000 Premium on Bonds Payable 23055 Loss on Redemption of Bonds 58195 Cash 16250 (To record reacquisition)