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Waterway Co. is building a new hockey arena at a cost of $2,730,000. It received a downpayment of $470,000 from local businesses to support the
Waterway Co. is building a new hockey arena at a cost of $2,730,000. It received a downpayment of $470,000 from local businesses to support the project, and now needs to borrow $2,260,000 to complete the project. It therefore decides to issue $2,260,000 of 11.0%,10-year bonds. These bonds were issued on January 1,2024 , and pay interest annually on each January 1 . The bonds yield 10%. Click here to view factor table. Prepare the journal entry to record the issuance of the bonds on January 1, 2024. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.)
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