Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help ASAP Universal Foods issued 12% bonds, dated January 1, with a face amount of $160 million on January 1, 2021 to Wang

I need help ASAPimage text in transcribed

Universal Foods issued 12% bonds, dated January 1, with a face amount of $160 million on January 1, 2021 to Wang Communications. The bonds mature on December 31, 2035 (15 years). The market rate of interest for similar issues was 14%. 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) (Use appropriate factor(s) from the tables provided.) Required: 1. to 3. Prepare the journal entries to record the purchase of the bonds by Wang Communications on January 1, 2021, interest revenue on June 30, 2021 and interest revenue on December 31, 2028. (Round final answers to the nearest whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. Credit No 1 Date General Journal January 01, 2021 Investment in bonds Discount on investment in bonds Cash Debit 160,000,000 2 June 30, 2021 9,600,000 Cash Discount on investment in bonds Interest revenue December 31, 202 Cash Discount on investment in bonds Interest revenue

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

state what is meant by the term performance management

Answered: 1 week ago