File Tools View Chapter 10 Assignment (1) P PROTECTED VIEW Be careful files from the Internet can contain viruses. Unless you need to edit it's safer to stay in Protecte AP10-8A (Amount of bond issuance, journal entries, and carrying value) Frank Suit Ltd. designs and manufactures anti-gravity suits used by air force pilots and astronauts for space travel. To finance the expansion of its manufacturing operations, the company, in consultation with an investment bank, decided to issue bonds. On August 1, it issued 10-year, semi-annual bonds with a face value of $125 million. The contract rate on the bonds was 12% and the proceeds on the issuance of the bonds were 5118,112,500 to yield 13.0%. Interest payments are to be made each January 31 and July 31. Required a. Determine the price of the bonds on issuance and prepare the joumal entry to record the bonds' sale on August 1. b. Provide the journal entries to record the first two interest payments. Ignore year- end accruals of interest. e. What amount will be reported for the bond liability on the company's statement of financial position at December 31 of the first year? Screens 3.4 Shut down before returning to library