Question: (Note: This is a variation of E 147 modified to consider the investors perspective.) Universal Foods sold the entire bond issue described in the previous

(Note: This is a variation of E 14–7 modified to consider the investor’s perspective.) Universal Foods sold the entire bond issue described in the previous exercise to Wang Communications.

Required:
1. Prepare the journal entry to record the purchase of the bonds by Wang Communications on January 1, 2021.
2. Prepare the journal entry to record interest revenue on June 30, 2021.
3. Prepare the journal entry to record interest revenue on December 31, 2028.

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1 January 1 2021 Interest 7500000 x 1376483 103236225 Principal 150000000 x 017411 26116500 Present value price of the bonds 129352725 5 150000000 Present value of an ordinary annuity of 1 n 30 i 6 Ta... View full answer

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