Universal Foods issued 12% bonds, dated January 1, with a face amount of $175 million on January 1, 2018. The bonds mature on December 31, 2032 (15 years). The market rate of interest for similar issues was 14%. 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. Complete this question by entering your answers in the tabs below Req1 Req 2 to 4 Determine the price of the bonds at January 1, 2018. (Enter your answers in whole dollars.) Table values are based on: Amount Present Value Cash Flow Interest Principal Price of bonds Req1 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 issuance of the bond on January 1, 2018. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2018 Record entry Clear entry View general journal 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 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 Universal Foods issued 12% bonds, dated January 1, with a face amount of $175 million on January 1, 2018. The bonds mature on December 31, 2032 (15 years). The market rate of interest for similar issues was 14%. 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. Complete this question by entering your answers in the tabs below Req1 Req 2 to 4 Determine the price of the bonds at January 1, 2018. (Enter your answers in whole dollars.) Table values are based on: Amount Present Value Cash Flow Interest Principal Price of bonds Req1 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 issuance of the bond on January 1, 2018. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2018 Record entry Clear entry View general journal 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 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
