McWherter Instruments sold $480 million of 10% bonds, dated January 1, on January 1, 2021. The bonds 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. Blanton Technologies, Inc., purchased $480,000 of the bonds as a long-term investment. (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 issued on January 1, 2021. 2. Prepare the journal entries to record (a) their issuance by McWherter and (b) Blanton's investment on January 1, 2021. 3. Prepare the journal entries by (a) McWherter and (b) Blanton to record interest on June 30, 2021 (at the effective rate) 4. Prepare the journal entries by (a) McWherter and (b) Blanton to record interest on December 31, 2021 (at the effective rate). Complete this question by 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, 2021. (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.) Debit Credit No 1 Date General Journal January 01, 2021 Cash Discount on bonds payable Bonds payable 407,777,760 72,222,240 480,000,000 2 480,000 January 01, 2021 Investment in bonds Discount on bonds payable Cash O 72,222 407.778 points Complete this question by entering your answers in the tabs below. Required 1 Required 2 RegHired 3 Required 4 Prepare the journal entries by (a) McWherter and (b) Blanton to record interest on June 30, 2021 (at the effective rate). (If 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 General Journal Credit Date June 30, 2021 Debit 24,466,666 1 Interest expense Discount on bonds payable Interest payable 466,666 24,000,000 2 June 30, 2021 24,000 Cash Discount on bonds payable Interest revenue O 467 23,533 Required 1 Required 2 Required 3 Retuired 4 Prepare the journal entries by (a) McWherter and (b) Blanton to record interest on December 31, 2021 (at the effective ra (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.) Debit Credit No 1 Date General Journal December 31, 202 Interest expense Discount on bonds payable Interest payable 24,494,666 494,666 24,000,000 2 24,000 December 31, 201 Cash Discount on bonds payable Interest revenue O 495 x 23,505