Exercise $14-3($Algo$)$ Determine the price of bonds; issuance; effective interest $[$LO$14-2]$

The Bradford Company issued $12\%$ bonds, dated January $1,$ with a face amount of $$97$ million on January $1,2024.$

The bonds mature on December $31,2033(10$ years$).$

For bonds of similar risk and maturity, the market yield is $14\%.$

Interest is paid semiannually on June $30$ and December $31.$

Required:

Determine the price of the bonds at January $1,2024.$

to $4.$ Prepare the journal entries to record their issuance by The Bradford Company on January $1,2024,$ interest on June $30,2024$

$($at the effective rate$)$ and interest on December $31,2024($at the effective rate$).$

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Complete this question by entering your answers in the tabs below.

Prepare the journal entries to record their issuance by The Bradford Company on January $1,2024,$ interest on June $30,2024($at the

effective rate$)$ and interest on December $31,2024($at the effective rate$).$

Note: 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.

Journal entry worksheet

Record the bond issuance by the Bradford Company.

Note: Enter debits before credits.