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On January 1 , 2 0 2 1 , Mania Enterprises issued 1 2 % bonds dated January 1 , 2 0 2 1 ,

On January 1,2021, Mania Enterprises issued 12% bonds dated
January 1,2021, with a face amount of $20 million. The bonds
mature in 2030(10 years). For bonds of similar risk and maturity,
the market yield is 10%. Interest is paid semiannually on June 30
and December 31.(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of
$1 and PVAD of $1)(Use appropriate factor(s) from the tables
provided. Round your intermediate calculations to the nearest whole
dollar.)
Required:
1. Determine the price of the bonds at January 1,2021.
2. Prepare the journal entry to record the bond issuance by Mania
on January 1,2021.
3. Prepare the journal entry to record interest on June 30,2021,
using the effective interest method.
4. Prepare the journal entry to record interest on December 31,
2021, using the effective interest method.

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