Exercise 14 7 Determine the price of bonds issuance straight line method LO14 2 Universal Foods issued 8 bonds, dated January 1, with a face amount of $210 million on January 1, 2013 The bonds mature on December 31, 2027 (15 years) The market rate of interest for similar issues was 10 Interest is paid semiannually on June 30 and December 31 Universal uses the straight line method (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided ) Required 1 Determine the price of the bonds at January 1, 2013 (Enter your answer in whole dollars ) 2 Prepare the journal entry to record their issuance by Universal Foods on January 1, 2013 (Enter your answers in whole dollars If no entry is required for a transaction, select No journal entry required in the first account field ) 3 Prepare the journal entry to record interest on June 30, 2013 (Enter your answers in whole dollars If no entry is required for a transaction, select No journal entry required in the first account field ) 4 Prepare the journal entry to record interest on December 31, 2020 (Enter your answers in whole dollars If no entry is required for a transaction, select No journal entry required in the first account field )

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Exercise 14-7 Determine the price of bonds; issuance; straight-line method [LO14-2] Universal Foods issued 8% bonds, dated January 1, with a face amount of $210

Exercise 14-7 Determine the price of bonds; issuance; straight-line method [LO14-2]

Universal Foods issued 8% bonds, dated January 1, with a face amount of $210 million on January 1, 2013. The bonds mature on December 31, 2027 (15 years). The market rate of interest for similar issues was 10%. Interest is paid semiannually on June 30 and December 31. Universal uses the straight-line method. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:
1.	Determine the price of the bonds at January 1, 2013. (Enter your answer in whole dollars.)

2.	Prepare the journal entry to record their issuance by Universal Foods on January 1, 2013. (Enter your answers in whole dollars. If no entry is required for a transaction, select "No journal entry required" in the first account field.)

3.	Prepare the journal entry to record interest on June 30, 2013. (Enter your answers in whole dollars. If no entry is required for a transaction, select "No journal entry required" in the first account field.)

4.	Prepare the journal entry to record interest on December 31, 2020.(Enter your answers in whole dollars. If no entry is required for a transaction, select "No journal entry required" in the first account field.)