Federal Semiconductors issued 10% bonds, dated January 1, with a face amount of $820 million on...
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Federal Semiconductors issued 10% bonds, dated January 1, with a face amount of $820 million on January 1, 2021. The bonds sold for $754,208,120 and mature on December 31, 2040 (20 years). For bonds of similar risk and maturity the market yield was 11%. Interest is paid semiannually on June 30 and December 31. Required: 1. to 3. Prepare the journal entries to record their issuance by Federal on January 1, 2021, interest on June 30, 2021 (at the effective rate) and interest on December 31, 2021 (at the effective rate). 4. At what amount will Federal report the bonds among its liabilities in the December 31, 2021, balance sheet? Req 1 to 3 Req 4 Prepare the journal entries to record their issuance by Federal on January 1, 2021, interest on June 30, 2021 (at the effective rate) a interest on December 31, 2021 (at the effective rate). (If no entry is required for a transaction/event, select "No journal entry requir in the first account field. Enter your answers in whole dollars.) View transaction list > 1 Record the issuance of the bond on January 1, 2021. Record the interest on June 30, 2021 (at the effective rate). 2 3 Record the interest on December 31, 2021 (at the Req 1 to 3 Req 4 At what amount will Federal report the bonds among its liabilities in the December 31, 2021, balance sheet? (Enter your answers in whole dollars.) Cash Interest Paid Discount Amortization Bond Interest Period-End Carrying Value Expense 01/01/2021 06/30/2021 12/31/2021 Federal Semiconductors issued 10% bonds, dated January 1, with a face amount of $820 million on January 1, 2021. The bonds sold for $754,208,120 and mature on December 31, 2040 (20 years). For bonds of similar risk and maturity the market yield was 11%. Interest is paid semiannually on June 30 and December 31. Required: 1. to 3. Prepare the journal entries to record their issuance by Federal on January 1, 2021, interest on June 30, 2021 (at the effective rate) and interest on December 31, 2021 (at the effective rate). 4. At what amount will Federal report the bonds among its liabilities in the December 31, 2021, balance sheet? Req 1 to 3 Req 4 Prepare the journal entries to record their issuance by Federal on January 1, 2021, interest on June 30, 2021 (at the effective rate) a interest on December 31, 2021 (at the effective rate). (If no entry is required for a transaction/event, select "No journal entry requir in the first account field. Enter your answers in whole dollars.) View transaction list > 1 Record the issuance of the bond on January 1, 2021. Record the interest on June 30, 2021 (at the effective rate). 2 3 Record the interest on December 31, 2021 (at the Req 1 to 3 Req 4 At what amount will Federal report the bonds among its liabilities in the December 31, 2021, balance sheet? (Enter your answers in whole dollars.) Cash Interest Paid Discount Amortization Bond Interest Period-End Carrying Value Expense 01/01/2021 06/30/2021 12/31/2021
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Answer rating: 100% (QA)
Answer Journal Entries Date Account title and Explanation Post Ref Debit Credit 2021 Jan1 cash 7... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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