Answer Happy

Larkspur Co. is building a new hockey arena at a cost of$2,620,000. It received a downpayment of $480,000 from localbusinesses to support the project, and now needs to borrow$2,140,000 to complete the project. It therefore decides toissue $2,140,000 of 12%, 10-year bonds. These bondswere issued on January 1, 2019, and pay interest annually on eachJanuary 1. The bonds yield 11%.
(a)
Correct answer icon
Your answer is correct.
Prepare the journal entry to record the issuance of the bonds onJanuary 1, 2019. (Round present value factorcalculations to 5 decimal places, e.g. 1.25124 and the final answerto 0 decimal places e.g. 58,971. 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 isentered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
January 1, 2019
List of Accounts
Attempts: 1 of 7 used
(b)
Prepare a bond amortization schedule up to and including January1, 2023, using the effective interestmethod. (Round answers to 0 decimal places, e.g.38,548.)
Date
CashPaid
InterestExpense
PremiumAmortization
CarryingAmount ofBonds