McWherter Instruments sold $300 million of 8% bonds, dated January 1, on January 1, 2024.

• The bonds mature on December 31, 2043 (20 years).
• For bonds of similar risk and maturity, the market yield was 10%.
• Interest is paid semiannually on June 30 and December 31.
• Blanton Technologies, Incorporated, purchased $300,000 of the bonds as a long-term investment.

Required:

1. Determine the price of the bonds issued on January 1, 2024.
2. Prepare the journal entries to record (a) their issuance by McWherter and (b) Blanton's investment on January 1, 2024.
3. Prepare the journal entries by (a) McWherter and (b) Blanton to record interest on June 30, 2024 (at the effective rate).
4. Prepare the journal entries by (a) McWherter and (b) Blanton to record 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)

• Required 1
• Required 2
• Required 3
• Required 4

Prepare the journal entries to record (a) their issuance by McWherter and (b) Blanton's investment on January 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in whole dollars.

No	Date	General Journal	Debit	Credit
1	January 01, 2024	Cash	248,509,080
		Discount on bonds payable	51,490,920
		Bonds payable		300,000,000
2	January 01, 2024	Investment in bonds	300,000
		Discount on bonds payable
		Cash

Journal entry worksheet

• Record the interest expense for McWherter.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
June 30, 2024	Interest expense	12,425,454
	Cash

Journal entry worksheet

• Record the interest revenue for Blanton.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
June 30, 2024	Interest revenue	12,425,454
	Cash		12,425,454