Federal Semiconductors issued $11\%$ bonds, dated January $1,$ with a

face amount of $$800$ million on January $1,2021.$ The bonds sold for

$$739,814,813$ and mature on December $31,2040(20$ years$).$ For

bonds of similar risk and maturity the market yield was $12\%.$

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

$$

Required:

$1.$ to $3.$Prepare the journal entries to

record their issuance by Federal on January $1,2021,$ interest on

June $30,2021($at the effective rate$)$ and interest on December $31,$

$2021($at the effective rate$).$

$4.$At what amount will Federal report the

bonds among its liabilities in the December $31,2021,$ balance

sheet?