Bonita Co. is building a new hockey arena at a cost of $2,690,000. It received a downpayment of $550,000 from local businesses to support the project, and now needs to borrow $2,140,000 to complete the project. It therefore decides to issue $2,140,000 of 12.0%, 10-year bonds. These bonds were issued on January 1, 2024, and pay interest annually on each January 1. The bonds yield 11%. Click here to view factor table. (a) 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.) Date Account Titles and Explanation January 1,2024 (b) Date /1/24 Your answer is partially correct. eTextbook and Media List of Accounts /1/25 /1/26 /1/27 /1/28 Cash Premium on Bonds Payable Bonds Payable $ Your answer is partially correct. Prepare a bond amortization schedule up to and including January 1, 2028, using the effective-interest method. (Round present value factor to 5 decimal places, e.g. 1.24356 and final answers to O decimal places, e.g. 38,548.) Cash Paid 256800 256800 256800 256800 Interest Expense 249266 248437 247517 Debit 246496 2,266,055 Premium Amortization 7534 8363 9283 Credit 10304 126055 2140000 Attempts: 2 of 2 used Carryi Value Bonc
Bonita Co. is building a new hockey arena at a cost of $2,690,000. It received a downpayment of $550,000 from local businesses to support the project, and now needs to borrow $2,140,000 to complete the project. It therefore decides to issue $2,140,000 of 12.0%, 10-year bonds. These bonds were issued on January 1, 2024, and pay interest annually on each January 1. The bonds yield 11%. Click here to view factor table. (a) 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.) Date Account Titles and Explanation January 1,2024 (b) Date /1/24 Your answer is partially correct. eTextbook and Media List of Accounts /1/25 /1/26 /1/27 /1/28 Cash Premium on Bonds Payable Bonds Payable $ Your answer is partially correct. Prepare a bond amortization schedule up to and including January 1, 2028, using the effective-interest method. (Round present value factor to 5 decimal places, e.g. 1.24356 and final answers to O decimal places, e.g. 38,548.) Cash Paid 256800 256800 256800 256800 Interest Expense 249266 248437 247517 Debit 246496 2,266,055 Premium Amortization 7534 8363 9283 Credit 10304 126055 2140000 Attempts: 2 of 2 used Carryi Value Bonc
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Bonita Co. is building a new hockey arena at a cost of $2,690,000. It received a downpayment of $550,000 from local businesses to
support the project, and now needs to borrow $2,140,000 to complete the project. It therefore decides to issue
$2,140,000 of 12.0%, 10-year bonds. These bonds were issued on January 1, 2024, and pay interest annually on each January 1. The
bonds yield 11%.
Click here to view factor table.
(a)
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 O 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.)
Date Account Titles and Explanation
January
1, 2024
(b)
Your answer is partially correct.
eTextbook and Media
/1/25
List of Accounts
Date
-
/1/24 $
/1/26
Cash
/1/27
Premium on Bonds Payable
/1/28
Bonds Payable
Your answer is partially correct.
Prepare a bond amortization schedule up to and including January 1, 2028, using the effective-interest method. (Round present
value factor to 5 decimal places, e.g. 1.24356 and final answers to O decimal places, e.g. 38,548.)
Cash
Paid
256800
256800
256800
256800
Interest
Expense
$
DOLNO
249266
248437
247517
246496
Debit
$
2,266,055
Premium
Amortization
DOROU
7534
8363
9283
Credit
10304
126055
2140000
Attempts: 2 of 2 used
$
Carryi
Value
Bond
100000
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