Venezuela co is building a new hockey arena at a cost of

Assignment Help Accounting Basics

Reference no: EM13585557

Venezuela Co. is building a new hockey arena at a cost of $2,579,000. It received a downpayment of $510,400 from local businesses to support the project, and now needs to borrow $2,068,600 to complete the project. It therefore decides to issue $2,068,600 of 12%, 10 year bonds. These bonds were issued on January 1, 2013, and pay interest annually on each January 1. The bonds yield 11%. Venezuela paid $55,400 in bond issue costs related to the bond sale.

(Round answers to 0 decimal places, e.g. 38,548.)

(a) Prepare the journal entry to record the issuance of the bonds and the related bond issue costs incurred on January 1, 2013.

(b) Prepare a bond amortization schedule up to and including January 1, 2017, using the effective interest method.

(c) Assume that on July 1, 2016, Venezuela Co. redeems half of the bonds at a cost of $1,108,970 plus accrued interest. Prepare the journal entry to record this redemption.

Reference no: EM13585557

Questions Cloud

What are the vernal and autumnal equinoxes what are the : question 1what are the vernal and autumnal equinoxes? what are the summer and winter solstices? how are these four

A particle with a charge of q -550nc is moving in a : a particle with a charge of q -5.50nc is moving in a uniform magnetic field of b? -1.25t k.the magnetic force on the

Find an equation of a plane that passes through the point : question 1 find an equation of a plane that passes through the point 010 and is parallel to the plane 4x - 3y 5z

A solid ball and a hollow ball each with a mass of 229 kg : a solid ball and a hollow ball each with a mass of 2.29 kg and radius 0.115 m start from rest and roll down a ramp of

Venezuela co is building a new hockey arena at a cost of : venezuela co. is building a new hockey arena at a cost of 2579000. it received a downpayment of 510400 from local

Wl-mart sells thermometers 2 and hot-water bottles 6 in : wal-mart sells thermometers 2 and hot-water bottles 6. in december wal-marts total sales were 1200. customers bought 7

Problem 30 amount realized and basis determination lo1 : problem 30 amount realized and basis determination lo.1 kareem bought a rental house in march 2008 for 300000 of which

In 1968 the estimated population of the world was : in 1968 the estimated population of the world was 3559028982 people. when this number is written in expanded form using

The heat capacity is critical in calculating the enthalpy : consider the melting of one mole of water. use the following data to answer the questionss? h2o l69.9jk.mol s? h2o

User Account

All Pages