Problem 14-7 Issuer and investor, effective interest (LO14-2] McWherter Instruments sold $400 million of 6% bonds, dated January 1, on January 1, 2018. The bonds mature on December 31, 2037 (20 years). For bonds of similar risk and maturity, the market yleld was 8% Interest is paid semiannually on June 30 and December 31 Blanton Technologies, Inc., purchased $400,000 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, 2018 2. Prepare the journal entries to record (a) their Issuance by McWherter and (b) Blanton's Investment on January 1, 2018 3. Prepare the journal entries by (a) McWherter and (b) Blanton to record Interest on June 30, 2018 at the effective rate). 4. Prepare the journal entries by (a) McWherter and (b) Blanton to record Interest on December 31, 2018 (at the effective rate). Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the price of the bonds issued on January 1, 2018. (Enter your answer in whole dollars.) Bond price Required 2 > (20 years). For bonds of similar risk and maturity, the market yleld was 8%. Interest is paid semiannually on June 30 and December 31. Blanton Technologies, Inc., purchased $400,000 of the bonds as a long-term Investment (FV of $1, PV of $1. FVA of S1, 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, 2018 2. Prepare the journal entries to record (a) their issuance by McWherter and (b) Blanton's Investment on January 1, 2018 3. Prepare the journal entries by (a) McWherter and (b) Blanton to record interest on June 30, 2018 at the effective rate) 4. Prepare the journal entries by (a) McWherter and (b) Blanton to record interest on December 31, 2018 (at the effective rate) Answer is not complete. Complete this question by entering your answers in the tabs below. 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, 2018. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in whole dollars.) - No Debit Credit 1 Date General Journal January 01, 2018 Cash Discount on bonds payable Bonds payable 400.000.000 2 400,000 January 01, 2018 Investment in bonds Discount on bond investment Cash (20 years). For bonds of similar risk and maturity, the market yield was 8% Interest is paid semiannually on June 30 and December 31 Blanton Technologies, Inc., purchased $400,000 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, 2018 2. Prepare the journal entries to record (a) their Issuance by McWherter and (b) Blanton's Investment on January 1, 2018 3. Prepare the journal entries by (a) McWherter and (b) Blanton to record interest on June 30, 2018 (at the effective rate). 4. Prepare the journal entries by (a) McWherter and (b) Blanton to record interest on December 31, 2018 (at the effective rate). x Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the journal entries by (a) McWherter and (b) Blanton to record interest on June 30, 2018 (at the effective rate). (IF no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars. No Date Debit Credit 1 June 30, 2018 General Journal Interest expense Discount on bonds payable Cash June 30, 2018 Discount on bond investment Interest revenue ( Required 2 Required 4 > (20 years). For bonds of similar risk and maturity, the market yield was 8% Interest is paid semiannually on June 30 and December 31 Blanton Technologies, Inc., purchased $400,000 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 Sl) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price of the bonds issued on January 1, 2018 2 Prepare the journal entries to record (a) their issuance by McWherter and (b) Blanton's Investment on January 1 2018 3. Prepare the journal entries by (a) McWherter and (b) Blanton to record Interest on June 30, 2018 at the effective rate) 4. Prepare the journal entries by (a) McWherter and (b) Blanton to record Interest on December 31, 2018 (at the effective rate). Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the journal entries by (a) MeWherter and (b) Blanton to record interest on December 31, 2018 at the effective rate). (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in whole dollars.) Date General Journal Debit Credit December 31, 20 interest expense Discount on bonds payable Cash December 31, 201 Cath Discount on bond investment Interest revenue