CH.14 Q.2

The Bradford Company issued 10% bonds, dated January 1, with a face amount of $93 million on January 1, 2021. The bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: 1. Determine the price of the bonds at January 1, 2021.

2. to 4. Prepare the journal entries to record their issuance by The Bradford Company on January 1, 2021, interest on June 30, 2021 and interest on December 31, 2021 (at the effective rate).

X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 to 4 Determine the price of the bonds at January 1, 2021. (Enter your answer whole dollars.) Price of bonds $ 86,154,689 X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Prepare the journal entries to record their issuance by The Bradford Company on January 1, 2021, interest on June 30, 2021 and interest on December 31, 2021 (at the effective rate). (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit 1 January 01, 2021 Cash Discount on bonds payable Bonds payable 86,154,689 X 6,845,311 93,000,000 2 June 30, 2021 Interest expense 5,169,281 Cash 4,650,000 519,281 X Discount on bonds payable 3 December 31, 20Interest expense 5,200,438 Cash Discount on bonds payable 4,650,000 550,438 X