Solve (c) enlarge image to see better (use zoom in browser) if you have to Dramb

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Solve (c) enlarge image to see better (use zoom in browser) if you have to

Dramble Co. is building a new hockey arena at a cost of $2,430,000. It received a downpayment of90 000 trom local businesses to support the pro ect and now needs to borrow s1.940 000 to complete the pro ect. It therefore decides to issue si 940 000 o 11% 10-y burils. These bonds were issued ori January 1, 2016, and pay interest ennually Un each January 1·The bonds yield 10%. (a) Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2016. (Round present value factor calculations to 5 decinmal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,97. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts, Credit account titles are automaticolly Indented when amount is entered. Do not Indent manually.) Date Account Titles and Dxplanation Debit Credit January 1, 2016 Premium on Bonds Payable 119199 Honds Payable Click if you would like to Show Work for this queston: Open Show Wor k OF ACCOUNTS SHOw SHOW SOLUTION SHOW ANSWER Attempts: 9 of 15 used (b) Your answer is corract. Prepare a bund amortization schedule up to and including January 1, 2020, using the effective interest method. (Round answers to 0 decimal places, e.q. 38,548.) Cosh Paid Interest Expense Amount of Donds Date Amortization 20591 213 205171 8228 2043491 213 204349 1/1/20 2021181

Explanation / Answer

Jul-1-19 Bonds payable 970000 =1940000/2 Premium on Bonds payable 44731 =((2034440-1940000)/2)-2489 Loss on redemption of bonds 34469        Cash 1049200

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