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Question: 2018 capulet corporation does not use reversing entries p142 l012...

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2018. Capulet Corporation does not use reversing entries. P14-2 (L01,2) EXCEL (Issuance and Redemption of Bonds) Venezuela Co. is building a new hockey arena at a cost of 00,000. It received a downpayment of $500,000 from local businesses to support the project, and now needs to borrow $2,000,000 tocomplete the project. It therefore decides to issue $2,000.000 of 10.5%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1 . The bonds yield 10%. Instructions (a) Prepare the journal entry to record the issuance of the bonds on January 1, 2016 (b) Prepare a bond amortization schedule up to and including January 1, 2020, using the effective-interest method. ume that on July 1, 2019, Venezuela Co. redeems half of the bonds at a cost of $1,065,000 plus accrued interest. Prepare the journal entry to record this redemption.

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