Exercise 14-13 Issuance of bonds; effective interest (LO14-2] Federal Semiconductors issued 10% bonds, dated January 1, with a face amount of $850 million on January 1, 2018. The bonds sold for $781,801,100 and mature on December 31, 2037 (20 years). For bonds of similar risk and maturity the market yield was 11%. Interest is paid semiannually on June 30 and December 31. Required: 1. to 3. Prepare the journal entry to record their issuance by Federal on January 1, 2018, interest on June 30, 2018 (at the effective rate) and interest on December 31, 2018 (at the effective rate). 4. At what amount will Federal report the bonds among its liabilities in the December 31, 2018, balance sheet? Req 1 to 3 Req 4 Prepare the journal entry to record their issuance by Federal on January 1, 2018, interest on June 30, 2018 (at the effective rate) and interest on December 31, 2018 (at the effective rate). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list View journal entry worksheet Credit No 1 Date General Journal January 01, 2018 Cash Discount on bonds payable Bonds payable Debit 781,801,100 68,198,900 850,000,000 1 2 June 30, 2018 42,999,060 Interest expense Discount on bonds payable Cash 499,060 42,500,000 December 31, 2018 Interest expense 42,500,000 Discount on bonds payable 429,060 42,500,000 Cash Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 At what amount will Federal report the bonds among its liabilities in the December 31, 2018, balance sheet? (Enter your answers in whole dollars.) Period-End Cash Interest Paid Bond Interest Expense Discount Amortization Carrying Value 01/01/2018 | $ 499,060 781,801,100 782,300,160 $ 42,999,060 $ 06/30/2018 12/31/2018 $ 42,500,000 42,500,000