Problem 14-2 (Part Level Submission) Pearl Co. is building a new hockey arena at a cost of $2,420,000. It received a downpayment of $540,000 from...
Problem 14-2 (Part Level Submission) Pearl Co. is building a new hockey arena at a cost of $2,420,000. It received a downpayment of$540,000 from local businesses to support the project, and now needs to borrow $1,880,000 to completethe project. It therefore decides to issue $1,880,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 10%. V (3)Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2016. (Round present valuefactor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal placese.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 is entered. Do notindent manually.) Date Account Titles and Explanation Debit CreditPremium on Bonds Payable - 115518 Bonds Payable - 1880000
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