Universal Foods issued 10% bonds, dated January 1, with a face amount of $260 million on January 1, 2018. The bonds mature on December 31, 2037 (20 years). The market rate of interest for similar issues was 12%. Interest is paid semiannually on June 30 and December 31. Universal uses the straight-line method. (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 at January 1, 2018. 2. to 4. Prepare the journal entry to record their issuance by Universal Foods on January 1, 2018, interest on June 30, 2018 and interest on December 31, 2025.

5.

Complete this question by entering your answers in the tabs below. Req 1Req 2 to 4 Determine the price of the bonds at January 1, 2018. (Enter your answers in whole dollars.) Table values are based on: Cash Flow Interest Principal Amount Present Value Price of bonds Req 1 Req 2 to 4 Prepare the journal entry to record their issuance by Universal Foods on January 1, 2018, interest on June 30, 2018 and interest on December 31, 2025 Enter your answers in whole dollars. If no entry is required for a transaction/event, select No urnal entry required" in the first account field.) View transaction list Journal entry worksheet Record the interest on June 30, 2018. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2018 Record entry Clear entry View general journal Req 1 Req 2 to 4 Prepare the journal entry to record their issuance by Universal Foods on January 1, 2018, interest on June 30, 2018 and interest on December 31, 2025. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the interest on December 31, 2025 Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2025 Record entry Clear entry View general journal Req1 Req 2 to 4