Q1)

Exercise 14-13 (Algo) Issuance of bonds; effective interest [LO14-2]

Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $770 million on January 1, 2021. The bonds sold for $712,070,205 and 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. Required: 1. to 3. Prepare the journal entries to record their issuance by Federal on January 1, 2021, interest on June 30, 2021 (at the effective rate) and interest on December 31, 2021 (at the effective rate). 4. At what amount will Federal report the bonds among its liabilities in the December 31, 2021, balance sheet?

Please do required 4 as the picture below

Q2) Both questions have same table

Federal Semiconductors issued 9% bonds, dated January 1, with a face amount of $810 million on January 1, 2021. The bonds sold for $740,509,331 and 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.

Required: 1. to 3. Prepare the journal entries to record their issuance by Federal on January 1, 2021, interest on June 30, 2021 (at the effective rate) and interest on December 31, 2021 (at the effective rate). 4. At what amount will Federal report the bonds among its liabilities in the December 31, 2021, balance sheet?

Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 At what amount will Federal report the bonds among its liabilities in the December 31, 2021, balance sheet? (Enter your answers in whole dollars.) Period-End Cash Interest Paid Bond Interest Expense Discount Amortization Carrying Value 712,070,205 01/01/2021 06/30/2021 12/31/2021 42,724,212 $ (7,325,788) $ 50,050,000 $ 50,050,000