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Venezuela Co, is building a new hockey arena. Information concerning the arena follows. + $2,500,000 $500,000 $2,000,000 cost of arena Down payment received with fund-raising

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Venezuela Co, is building a new hockey arena. Information concerning the arena follows. + $2,500,000 $500,000 $2,000,000 cost of arena Down payment received with fund-raising from local businesses to support the project Issuance of bonds on January 1, 2016 Interest is paid annually on January 1, starting in 12 months. Stated interest rate on bonds Term of bonds in years Yield on bonds 10.50% 10 10.00% Instructions Remember to show "cents in all dollar amounts (a) Prepare the journal entry to record the issuance of the bonds and the related bond issue costs incurred on January 1, 2016. Present value (issue price) of the bonds using the Excel PV function Debit Credit Jan. 1 (b) Prepare a bond amortization schedule up to and including January 1, 2020, using the effective interest method. Interest Paid S0.00 Interest Expense $0.00 Premium Amort. $0.00 Carrying Value Date Jan 1, 16 Jan 1, 17 Jan 1, 18 Jan 1, 19 Jan 1, 20 (C) Assume that on July 1, 2019, Venezuela Co. retires half of the bonds at a cost of $1,065,000 plus accrued interest. Prepare the journal entries to record this redemption. Carrying value of bonds as of 1/1/19 Amortization of bond premium until 7/1/19 Carrying value of bonds as of 7/1/19 ($1.065,000.00) Carrying value of 1/2 of bonds as of 7/1/19 - Reacquisition price of 1/2 of bonds - Gain or loss on redemption of 1/2 of bonds P14-2 + The sion on the amount C D E F G H (6) Prepare a bond amortization schedule up to and including January 1, 2020, using the effective interest method. Interest Paid $0.00 Interest Expense $0.00 Premium Amort. $0.00 Carrying Value Date Jan 1, 16 Jan 1, 17 Jan 1, 18 Jan 1, 19 Jan 1, 20 5 Assume that on July 1, 2019, Venezuela Co, retires han of the bonds at a cost of $1,065,000 plus accrued interest. Prepare the journal entries to record this redemption. Carrying value of bonds as of 1/1/19 Amortization of bond premium until 7/1/19 Carrying value of bonds as of 7/1/19 Carrying value of 1/2 of bonds as of 7/1/19 - Reacquisition price of 1/2 of bonds - Gain or loss on redemption of 1/2 of bonds ($1,065,000.00) mRNM10.0.0 OS The sign on the amount w The amounts in the following entry must be derived by using the amounts calculated in the amortization table. Entry to pay accrued interest Debit / Credit Jul. 1 The amount of Gain or Loss on Redemtion of Bonds that you include below must be linked to the amount calculated abo Entry for redemption (reacquisition of bonds) Debit Credit Jul. 1 RINN

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