Universal Foods issued 8% bonds, dated January 1, with a face amount of $250 million on January 1, 2018. The bonds mature on December 31, 2032 (15 years). The market rate of interest for similar issues was 10%. 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.

• Req 1
• 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:
n =
i =
Cash Flow	Amount	Present Value
Interest
Principal
Price of bonds

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.)

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 the interest on June 30, 2018.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
June 30, 2018

• Record the interest on December 31, 2025.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
December 31, 2025