Problem 14-2

Problen 14-2 Windsor Co. is building a new hockey arena at a cost of $2,430,000. It received a downpayment of $490,000 from local businesses to support the project, and now needs to borrow $1,940,000 to complete the project. It therefore decides to issue $1,940,000 of 11%, 10-year bonds. These bonds were issued or January 1, 2016, and pay interest annually on each January 1. The bonds yield 10%. Prepare the jounal entry to record the issuance of the bonds on January 1, 2016. (Round present value lactor calculations to 5 decimal places, e.g. 1.25124 and the linal answer to 0 decimal places e.g. 58,971. Il 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 Expkination Debit Credit anuary 1, 2016 Prepare a bond amorbzation schedule up to and including January 1, 2020, using the effective interest method. (Round answers to 0 decimal places, e.g. 38,548.) Cash Paid Carrying Amount ot Honds Interest Premium AmortizationHo /1V1B