Swifty Co. is building a new hockey arena at a cost of $2,600,000. It received a downpayment of $460,000 from local businesses tosupport the project, and now needs to borrow $2,140,000 to complete the project. It therefore decides to issue$2,140,000 of 12.0%, 10-year bonds. These bonds were issued on January 1, 2024, and pay interest annually on each January 1. Thebonds yield 11%.Click here to view factor table.(a)Prepare the journal entry to record the issuance of the bonds on January 1, 2024. (Round present value factor calculations to 5decimal places, e.g. 1.25124 and the final answer to 0 decimal places, e.g. 58,971. If no entry is required, select "No Entry" for the accounttitles and enter o 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.)DateJanuary 1,2024Account Titles and ExplanationCashBonds PayablePremium on Bonds PayableDebitCreditIII

Bonds serve as an important source of financing for organizations and provide investors with a…

wifty Co. is building a new hockey arena at a cost of upport the project, and now needs to borrow $2,140 2,140,000 of 12.0%, 10-year bonds. These bonds we monds yield 11%. Click here to view factor table.

wifty Co. is building a new hockey arena at a cost of upport the project, and now needs to borrow $2,140 2,140,000 of 12.0%, 10-year bonds. These bonds we monds yield 11%. Click here to view factor table.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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