Question: Universal Foods issued 12% bonds, dated January 1, with a face amount of $135 million on January 1, 2021 to Wang Communications. The bonds mature

bonds mature on December 31, 2035 (15 years). The market rate of

interest for similar issues was 14%. Interest is paid semiannually on June

30 and December 31. (FV of $1. PV of $1. FVA of

Universal Foods issued 12% bonds, dated January 1, with a face amount of $135 million on January 1, 2021 to Wang Communications. The bonds mature on December 31, 2035 (15 years). The market rate of interest for similar issues was 14%. 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 $i) (Use appropriate factor(s) from the tables provided.) Required: 1. to 3. Prepare the journal entries to record the purchase of the bonds by Wang Communications on January 1, 2021, interest revenue on June 30, 2021 and interest revenue on December 31, 2028. (Round 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.) Journal entry worksheet 1 2 3 Record the investment in bonds on January 1, 2021. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2021 + Record entry Clear entry View general journal Journal entry worksheet Record the interest on June 30, 2021. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2021 Record entry Clear entry View general Journal Journal entry worksheet

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