Universal Foods issued 10% bonds, dated January 1, with a face amount of $200 million...
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Universal Foods issued 10% bonds, dated January 1, with a face amount of $200 million on January 1, 2018. The bonds mature on December 31 2037 20 years). The market rate of interest for similar issues was 12% Interest is paid semiannually on June 30 and December 31. Universal uses the straight line method. (FV of $1. PV of $1. EVA of $1. PVA of SL. FVAD of S1 and PVAD of Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds at January 1, 2018 2. to 4. Prepare the journal entry to record their issuance by Universal Foods on January 1, 2018, Interest on June 30, 2018 and interest on December 31, 2025 Complete this question by entering your answers in the tabs below. Regi Req 2 to 4
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