Universal Foods issued $12\%$ bonds, dated January $1,$ with a face amount of $$170$ million on January $1,2021$ to Wang Communications.

The bonds mature on December $31,2038(15$ years$).$

The market rate of interest for similar issues was $14\%.$

Interest is paid semiannually on June $30$ and December $31.$

Universal uses the straight$-$line method.

Required:

$1.$ to $3.$ Prepare the journal entries to record the purchase of the bonds by Wang Communications on January $1,2024,$ interest revenue on June $30,2024$ and interest revenue on December $31,2031.$

Note: Round your final answers to the nearest whole dollars. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Answer rating: 100% (QA)

Answer To record the purchase of the bonds by Wang ... View the full answer