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Business, 21.09.2021 02:30 yyyyyy290

Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $800 million on January 1, 2021. The bonds sold for $739,814,813 and mature on December 31, 2040 (20 years). For bonds of similar risk and maturity the market yield was 12%. Interest is paid semiannually on June 30 and December 31. Required:
a. Prepare the journal entry to record their issuance by Federal on January 1, 2021.
b. Prepare the journal entry to record interest on June 30, 2021 (at the effective rate).
c. Prepare the journal entry to record interest on December 31, 2021 (at the effective rate).
d. At what amount will Federal report the bonds among its liabilities in the December 31, 2021, balance sheet?

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Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $800 million on Janu...

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