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Make the bond amortization schedule

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Jian Kang Co. is building a new hockey arena at a cost of $6,000,000. It received a down payment of $2,000,000 from local businesses to support the project and now needs to borrow $4,000,000 to complete the project. It therefore decides to issue $4,000,000 of 10.5%, 10-year bonds. These bonds were issued on January 1, 2018, and pay interest annually on each January 1. The bonds yield 10%.

Problem a. Make the bond amortization schedule.

Problem b. Prepare the journal entries needed in 2018 and 2019. Assume that on July 1, 2021, Jian Kang Co. retires half of the bonds at a cost of $1,065,000 and the accrued interest. Prepare the journal entry to record this retirement.

Reference no: EM132819476

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