$4$

$0\mathrm{.}96$

points

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References

Agee Technology, Incorporated, issued $9\%$ bonds, dated January $1,$ with a face amount of $$1,000$ million on July $1,2024,$ at a price of $$990$ million. For bonds of similar risk and maturity, the market yield is $10\%.$ Interest is paid semi$-$annually on June $30$ and December $31.$

Required:

Prepare the journal entry to record interest at the effective interest rate at December $31.$ What would be the amount$($s$)$ related to the bonds that Agee would report in its statement of cash flows for the year ended December $31,2024,$ if it uses the direct method?

Complete this question by entering your answers in the tabs below.

General

Journal

sh Paid

What would be the amount$($s$)$ related to the bonds that Agee would report in its statement of cash flows for the year ended December $31,2024,$ if it uses the direct method?

Note: Cash outflows should be indicated with a minus sign. Enter your answers in millions rounded to $1$ decimal place $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

$\backslash$table$[[,($$ in millions$),],[,$$$,49\mathrm{.}5],[,$$$,4\mathrm{.}5],[,$$$,45\mathrm{.}0]]$