Question

WileyPLUS Get look lielo WRA Mr Concursued Select Tre Necessary Wor US Kleo Intermediate Accounting, 170 CALCULATOR PRINTER VERSION < BACK Problem 14-02 (Part Level Submission) Sansota 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 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 decimal places, e.g. 1.25124 and the final answer too decimal places e.g. 58,971. IT 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, 2019 Cash 22229.00 dy Bonds Payable 2.100.000 Premium on Bonds Pay 129,00 SHOW LEST OP ACCOUNTS SHOW SOLUTION LINK TO TEXT LENK TO TERT Attempts: 2 of 5 used Your answer is partially correct. Try again. Prepare a bond amortization schedule up to and including January 1, 2023, using the effective interest method. (Pound answers to decimal places... 38.548.) Carrying Cash Interest Premium Amount of Date Paid Expense Amortization Bonds 1/1/19

Answer 1

b
Date	Cash paid	Interest expense	Premium amortization	Carrying amount
1/1/19	0	0	0	2229030
1/1/20	231000	222903	8097	2220933
1/1/21	231000	222093	8907	2212026
1/1/22	231000	221203	9797	2202229
1/1/23	231000	220223	10777	2191452

Workings:
Interest expense:
1/1/20	222903	=2229030*10%
1/1/21	222093	=2220933*10%
1/1/22	221203	=2212026*10%
1/1/23	220223	=2202229*10%