Federal Semiconductors issued bonds, dated January with a
face amount of $ million on January The bonds sold for
$ and mature on December years For
bonds of similar risk and maturity the market yield was
Interest is paid semiannually on June and December
Required:
to Prepare the journal entries to
record their issuance by Federal on January interest on
June at the effective rate and interest on December
at the effective rate
At what amount will Federal report the
bonds among its liabilities in the December balance
sheet?
