$($b$)$

Your answer is 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$.1\mathrm{.}24356$ and final answers to $0$ decimal places, e$.$g$.38,548.)$

$\backslash$table$[[$Cash$,$Interest$],[$Expense$,]],$

$\backslash$table$[[$Premium$],[$Amortization$]]$

$\backslash$table$[[$Carrying$],[$Value of$],[$Bonds$]]$

$($i$)$ $

Attempts: $2$ of $3$ used

Current Attempt in Progress

Pearl Co$.$ is building a new hockey arena at a cost of $$2,370,000.$ It received a downpayment of $$520,000$ from local businesses to support the project, and now needs to borrow $$1,850,000$ to complete the project. It therefore decides to issue $$1,850,000$ of $10\mathrm{.}0\%,10-$year bonds. These bonds were issued on January $1,2024,$ and pay interest annually on each January $1.$ The bonds yield $9\%.$

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$($a$)$

Your answer is correct.

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$.1\mathrm{.}25124$ 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 $0$ 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.$)$

$($b$)$

Your answer is 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$.1\mathrm{.}24356$ and final answers to $0$ decimal places, e$.$g$.38,548.)$

Your answer is partially correct.

Assume that on July $1,2027,$ Pearl Co$.$ redeems half of the bonds at a cost of $$1,019,100$ plus accrued interest. Prepare the journal entry to record this redemption. $($Round present value factor to $5$ decimal places, e$.$g$.1\mathrm{.}24356$ and final 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

$($To record reacquisition$)$