Question

Pronghorn Co. is building a new hockey arena at a cost of $2,560,000. It received a downpayment of $450,000 from local businesses to support the project, and now needs to borrow $2,110,000 to complete the project. It therefore decides to issue $2,110,000 of 12%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 11%.

Prepare the journal entry to record the issuance of the bonds on January 1, 2016. (Round present value factor calculations to 5 decimal 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 account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Title and Explanation	Debit	Credit
Jan 1, 2016	Cash	2234264
	Bonds Payable		2110000
	Premium on Bonds Payable		124264

Prepare a bond amortization schedule up to and including January 1, 2020, using the effective interest method. (Round answers to 0 decimal places, e.g. 38,548.)

Date	Cash Paid	Int Expense	Premium Amortization	Carrying Amount of Bonds
1/1/16				2234264
1/1/17	253200	245769	7431	2226833
1/1/18	253200	244952	8248	2218585
1/1/19	253200	244044	9156	2209429
1/1/20	253200	243037	10163	2199266

Assume that on July 1, 2019, Pronghorn Co. redeems half of the bonds at a cost of $1,110,800 plus accrued interest. Prepare the journal entry to record this redemption. (Round 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 amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
July 1, 2019	Interest Expense	60759
	Premium on Bonds Payable	2541
	Cash		63300
	(to record interest)
July 1, 2019	Bonds Payable	?
	Premium on Bonds Payable	?
	Loss on Redepmtion of Bonds	?
	Cash		1110800
	(to record reacquisition)

I posted the whole problem, I just need help with the last problem where the ? marks are

Answer 1

Journal Entries :-

Date	Particulars	Debit($)	Credit($)
July 1	Interest Expenses A/c Dr.	60759
	Premium on Bonds Payable A/c Dr.	2541
	To Cash A/c		63300
July 1	Bonds Payable A/c Dr.	1055000
	Premium on Bonds Payable A/c Dr.*	47174
	Loss on Redumption of Bonds A/c Dr.**	8626
	To Cash A/c		1110800

* Premium on Bonds Payable :-

= (($2209429 - ($10163 / 2)) - $2110000) / 2

= (($2209429 - $5082) - $2110000) / 2

= $94347 / 2

= $47174

** Loss on Redumption on bonds :-

= $1110800 - (($2209429-$5082)/2)

= $1110800 - $1102174

= $8626