Question
In: Accounting
Novak Co. is building a new hockey arena at a cost of $2,620,000. It received a...
Novak Co. is building a new hockey arena at a cost of $2,620,000. It received a downpayment of $480,000 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%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 11%.
Assume that on July 1, 2022, Novak Co. redeems half of the bonds
at a cost of $1,152,400 plus accrued interest. Prepare the journal
entry to record this redemption. (Round answers to 0
decimal places, e.g. 38,548. If no entry is required, select "No
Entry" for the account titles and enter 0 for the amounts. Credit
account titles are automatically indented when amount is entered.
Do not indent manually.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
July 1, 2022 |
|||
|
(To record interest) |
|||
|
July 1, 2022 |
|||
|
(To record reacquisition) |
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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