Question

JS Keso Intermediate Accounting, 170 CALCULATOR PRINTER VERSION « BACK NEXT Problem 14-02 (Part Level Submission) Sarasota Co. is building a new hockey arena at a cost of $2,550,000. It received a downpayment of $450,000 from local businesses to support the project, and now needs to borrow $2,100,000 to complete the project. It therefore decides to issue $2,100,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yleld 10% Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2019. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter for the amounts Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, 2015 Cash 2,229,030 udy Bonds Payable 2,100,000 Premium on Bonds Pay 129,030 SHOW LIST OR ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT Attempts: 2 of 5 used Your answer is correct Prepare a bond amortation schedule up to and including January 1, 2023, using the effective interest method. (Round answers to decimal places, ag. 38.548) Carrying Cash Interest Premium Amount of Paid Expense Amortization Bonds 1/1/19 2.229.030 1/1/20

Answer 1

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Date	Account Titles and Explanation	Debit	Credit
July 1,2022	Interest expense	55056		=2202229*50%*10%*6/12
	Premium on Bonds payable	2694
	Cash		57750	=2100000*50%*11%*6/12
July 1,2022	Bonds payable	1050000		=2100000*50%
	Premium on Bonds payable	48421		=(2202229-2100000)*50%-2694
	Loss on redemption of bonds	18080
	Cash		1116500