Venezuela Co. is building a new hockey arena. Information concerning the arena follows.
	Cost of arena							$ 2,500,000
	Down payment received from local businesses to support the project							500,000
	Borrowing needed to complete the project							2,000,000
	Issuance of bonds on January 1, 2016							2,000,000
		Interest is paid annually on January 2.
	Stated interest rate on bonds							10.50%
	Term of bonds in years							10
	Yield on bonds							10.00%

A. Prepare the journal entry to record the issuance of the bonds and the related bond issue costs incurred 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. retires half of the bonds at a cost of $1,065,000 plus accrued interest. Prepare the journal entry to record this redemption.