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mn 10. Recording Bond Transactions - Issuer (Estimated 10 points) On January 1, 2017, Mania Enterprises issued 10% bonds dated January 1, 2017, with a
mn 10. Recording Bond Transactions - Issuer (Estimated 10 points) On January 1, 2017, Mania Enterprises issued 10% bonds dated January 1, 2017, with a face amount of $25 million. The bonds mature in 2026 (10 years). For bonds of similar risk and maturity, the market yield is 12%Interest is paid semiannually on June 30 and December 31, You may round all amounts to the nearest S1 if necessary Mania Enterprises-Issuer: 1. Determine the price of the bonds at January 1, 2017. Show your calculation 2. Prepare the journal entry to record the bond issuance by Mania on January 1, 2017 3. Prepare the journal entry to record interest on June 30, 2017, using the effective interest method 4. Prepare the journal entry to record interest on December 31,2017, using the effective interest method. 5. Prepare the journal entry to record the maturity of the bonds in 2026 (assume that the final interest payment has already been recorded)
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