P 14-7 Issuer and investor, effective interest Page 822 L014-2 McWherter Instruments sold $400 million of 8% 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 10%. Interest is paid semiannually on June 30 and December 31. Blanton Technologies, Inc., purchased $400,000 of the bonds as a long-term investment. 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). P 14-8 Bonds; effective interest; partial period interest; financial statement effects TENNESSEE HARVESTER CORPORATION Requirement 1: What is the face amount of the bonds? Requirement 2: What is the initial selling price of the bonds? Requirement 3: What is the term to maturity in years? Requirement 4: Interest is determined by what approach? Requirement 5: What is the stated annual interest rate? Requirement 6: What is the effective annual interest rate? Requirement 7: What is the total cash interest paid over the term to maturity? Requirement 8: What is the total effective interest expense recorded over the term to maturity