Federal Semiconductors issued 10% bonds, dated January 1, with a face amount of $710 million...
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Federal Semiconductors issued 10% bonds, dated January 1, with a face amount of $710 million on January 1, 2021. The bonds sold for $653,033,860 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?
Prepare the journal entries to record their issuance by Federal on January 1,2021 , interest on June 30,20 rate) and interest on December 31, 2021 (at the effective rate). (If no entry is required for a transaction/ journal entry required" in the first account field. Enter your answers in whole dollars.) At what amount will Federal report the bonds among its liabilities in the December 31,2021 , balance sheet? (Enter your answers in whole dollars.)
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Prepare the journal entries to record their issuance by Federal on January 1,2021 , interest on June 30,20 rate) and interest on December 31, 2021 (at the effective rate). (If no entry is required for a transaction/ journal entry required" in the first account field. Enter your answers in whole dollars.) At what amount will Federal report the bonds among its liabilities in the December 31,2021 , balance sheet? (Enter your answers in whole dollars.)
