On July $1,20$X$1,$ Mirage Company issued $$250$ million of bonds with an $8\%$ coupon interest rate. The bonds mature in $10$ years and pay interest semiannually on June $30$ and December $31$ of each year. The market rate of interest on July $1,20$X$1,$ for bonds of this risk class was $8\%.$ Mirage closes its books on December $31.$ Ignore income taxes. Use the following links to the present value tables to calculate answers. $($PV of $1,$ PVAD of $1,$ and PVOA of $1)($Use the appropriate factor$($s$)$ from the tables provided.$)$

Required:

At what price were the bonds issued?

On July $1,203,$ the market interest rate for bonds of this risk class is $6\%.$ What is the fair value of the bonds on this date?

Suppose that $50\%$ of the bonds were repurchased for cash on July $1,203,$ at the market price. What journal entry would the company make to record this partial retirement?

B$.$

Suppose that $50\%$ of the bonds were repurchased for cash on July $1,203,$ at the market price. What journal entry would the company make to record this partial retirement? $($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 rounded to the nearest whole dollar and not millions of dollars.$)$

Show less

Journal entry worksheet

$1$

Prepare the entry to record the partial retirement of the bonds.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[1,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$