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 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% Wnstructions: 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 T Credit Choose from the following list of account names: Bonds Payable Cash Discount on Bonds Payable Gain on Redemption of Bonds Interest Expense Interest Payable Interest Receivable Interest Revenue Loss on Redemption of Bonds Premium on Bonds Payable Jan. 1 (b) 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 Bond Carrying 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. P14-20 (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 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 ########### The sign on the amount will tell you if gain or loss 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 above. Entry for redemption (reacquisition of bonds) Debit Credit Jul. 1