Exercise 14-3 (Algo) Determine the price of bonds; Issuance; effective Interest [LO14-2] The Bradford Company issued 10% bonds, dated January 1, with a face amount of $98 million on January 1, 2021. The bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Required: 1. Determine the price of the bonds at January 1, 2021. 2. to 4. Prepare the journal entries to record their issuance by The Bradford Company on January 1, 2021, interest on June 30, 2021 and interest on December 31, 2021 (at the effective rate). Complete this question by entering your answers in the tabs below. Req 2 to 4 Determine the price of the bonds at January 1, 2021. (Enter your answer whole dollars.) Price of bonds Req 1 < Req 1 Req 2 to 4 >
Exercise 14-3 (Algo) Determine the price of bonds; Issuance; effective Interest [LO14-2] The Bradford Company issued 10% bonds, dated January 1, with a face amount of $98 million on January 1, 2021. The bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Required: 1. Determine the price of the bonds at January 1, 2021. 2. to 4. Prepare the journal entries to record their issuance by The Bradford Company on January 1, 2021, interest on June 30, 2021 and interest on December 31, 2021 (at the effective rate). Complete this question by entering your answers in the tabs below. Req 2 to 4 Determine the price of the bonds at January 1, 2021. (Enter your answer whole dollars.) Price of bonds Req 1 < Req 1 Req 2 to 4 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Hi, please help with attached questions, thanks so much.
![Exercise 14-3 (Algo) Determine the price of bonds; Issuance; effective Interest [LO14-2]
The Bradford Company issued 10% bonds, dated January 1, with a face amount of $98 million on January 1, 2021. The bonds mature on
December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30
and December 31. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1)
Required:
1. Determine the price of the bonds at January 1, 2021.
2. to 4. Prepare the journal entries to record their issuance by The Bradford Company on January 1, 2021, interest on June 30, 2021
and interest on December 31, 2021 (at the effective rate).
Complete this question by entering your answers in the tabs below.
Req 2 to 4
Determine the price of the bonds at January 1, 2021. (Enter your answer whole dollars.)
Price of bonds
Req 1
< Req 1
Req 2 to 4 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2F9db1f723-50dc-43ce-b5ba-13b929a44e3a%2Ftv1lqp_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 14-3 (Algo) Determine the price of bonds; Issuance; effective Interest [LO14-2]
The Bradford Company issued 10% bonds, dated January 1, with a face amount of $98 million on January 1, 2021. The bonds mature on
December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30
and December 31. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1)
Required:
1. Determine the price of the bonds at January 1, 2021.
2. to 4. Prepare the journal entries to record their issuance by The Bradford Company on January 1, 2021, interest on June 30, 2021
and interest on December 31, 2021 (at the effective rate).
Complete this question by entering your answers in the tabs below.
Req 2 to 4
Determine the price of the bonds at January 1, 2021. (Enter your answer whole dollars.)
Price of bonds
Req 1
< Req 1
Req 2 to 4 >
![Exercise 14-3 (Algo) Determine the price of bonds; Issuance; effective Interest [LO14-2]
The Bradford Company issued 10% bonds, dated January 1, with a face amount of $98 million on January 1, 2021. The bonds mature on
December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30
and December 31. (FV of $1. PV of $1, FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1)
Required:
1. Determine the price of the bonds at January 1, 2021.
2. to 4. Prepare the journal entries to record their issuance by The Bradford Company on January 1, 2021, interest on June 30, 2021
and interest on December 31, 2021 (at the effective rate).
Complete this question by entering your answers in the tabs below.
Req 1
Prepare the journal entries to record their issuance by The Bradford Company on January 1, 2021, interest on June 30, 2021 and
interest on December 31, 2021 (at the effective rate). (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.)
Req 2 to 4
View transaction list
3
1 Record the bond issuance by the Bradford Company.
2 Record the interest on June 30, 2021 (at the effective
rate).
Record the interest on December 31, 2021 (at the
effective rate).
Note :
= journal entry has been entered
Record entry
Clear entry
< Req 1
X
Credit
View general journal
Req 2 to 4 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05c29da8-5e07-472c-a295-a56e55cdcfad%2F9db1f723-50dc-43ce-b5ba-13b929a44e3a%2Fyrsxu9_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 14-3 (Algo) Determine the price of bonds; Issuance; effective Interest [LO14-2]
The Bradford Company issued 10% bonds, dated January 1, with a face amount of $98 million on January 1, 2021. The bonds mature on
December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30
and December 31. (FV of $1. PV of $1, FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1)
Required:
1. Determine the price of the bonds at January 1, 2021.
2. to 4. Prepare the journal entries to record their issuance by The Bradford Company on January 1, 2021, interest on June 30, 2021
and interest on December 31, 2021 (at the effective rate).
Complete this question by entering your answers in the tabs below.
Req 1
Prepare the journal entries to record their issuance by The Bradford Company on January 1, 2021, interest on June 30, 2021 and
interest on December 31, 2021 (at the effective rate). (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.)
Req 2 to 4
View transaction list
3
1 Record the bond issuance by the Bradford Company.
2 Record the interest on June 30, 2021 (at the effective
rate).
Record the interest on December 31, 2021 (at the
effective rate).
Note :
= journal entry has been entered
Record entry
Clear entry
< Req 1
X
Credit
View general journal
Req 2 to 4 >
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