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# 4 - 0 6 Federal Semiconductors issued 1 0 % bonds, dated January 1 , with a face amount of $ 7 7 0
# Federal Semiconductors issued bonds, dated January with a face amount of $ million on January tableNoDate,General Journal,,Debit,CreditJune Interest expense,Cash,
The bonds sold for $ and mature on December years
For bonds of similar risk and maturity the market yleld was
Interest Is pald semlannually on June and December
Federal determines interest at the effective rate.
Federal elected the option to report these bonds at thelr falr value.
On December the falr value of the bonds was $ million as determined by their market value in the overthecounter
market.
Assume the falr value of the bonds on December had risen to $ million.
Requlred:
Complete the below table to record the following journal entries.
& Prepare the journal entries to record Interest on June December and adjust the bonds to thelr falr value for
presentation In the December balance sheet, and record Interest on June December and adjust the
bonds to their falr value for presentation in the December balance sheet. Federal determined that none of the change in falr
value in was due to a decline in general interest rates and onehalf of the increase in falr value in was due to a decline in
general Interest rates.
Complete this question by entering your answers in the tabs below.
Complete the below table to determine the amounts for the journal entries.
Note: Negative amount should be indicated by a minus sign. Round intermediate calculations and final answers to the nearest whole dollars.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
Federal determines interest at the effective rate.
Federal elected the option to report these bonds at their fair value.
On December the fair value of the bonds was $ million as determined by their market value in the overthecounter market.
Assume the fair value of the bonds on December had risen to $ million.
Required:
Complete the below table to record the following journal entries.
& Prepare the journal entries to record interest on June December and adjust the bonds to their fair value for presentation in the December balance sheet, and record interest on June December and adjust the bonds to their fair value for presentation in the December balance sheet. Federal determined that none of the change in fair value in was due to a decline in general interest rates and onehalf of the increase in fair value in was due to a decline in general interest rates.
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