Question
In: Accounting
Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $800 million on...
Federal Semiconductors issued 11% bonds, dated January 1, with a
face amount of $800 million on January 1, 2021. The bonds sold for
$739,814,813 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?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $800 million on...
Federal Semiconductors issued 11% bonds, dated January 1, with a
face amount of $800 million on January 1, 2021. The bonds sold for
$739,814,813 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. Federal determines
interest at the effective rate. Federal elected the option to
report these bonds at their fair value. On December 31, 2021, the
fair value...
Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $830 million on...
Federal Semiconductors issued 11% bonds, dated January 1, with a
face amount of $830 million on January 1, 2018. The bonds sold for
$767,557,868 and mature on December 31, 2037 (20 years). For bonds
of similar risk and maturity the market yield was 12%. Interest is
paid semiannually on June 30 and December 31. Federal determines
interest at the effective rate. Federal elected the option to
report these bonds at their fair value. On December 31, 2018, the
fair value...
Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $830 million on...
Federal Semiconductors issued 11% bonds, dated January 1, with a
face amount of $830 million on January 1, 2018. The bonds sold for
$767,557,868 and mature on December 31, 2037 (20 years). For bonds
of similar risk and maturity the market yield was 12%. Interest is
paid semiannually on June 30 and December 31. Federal determines
interest at the effective rate. Federal elected the option to
report these bonds at their fair value. On December 31, 2018, the
fair value...
Federal Semiconductors issued 12% bonds, dated January 1, with a face amount of $790 million on...
Federal Semiconductors issued 12% bonds, dated January 1, with a
face amount of $790 million on January 1, 2018. The bonds sold for
$734,125,169 and mature on December 31, 2037 (20 years). For bonds
of similar risk and maturity the market yield was 13%. Interest is
paid semiannually on June 30 and December 31. Federal determines
interest at the effective rate. Federal elected the option to
report these bonds at their fair value. On December 31, 2018, the
fair value...
Federal Semiconductors issued 8% bonds, dated January 1, with a face amount of $740 million on...
Federal Semiconductors issued 8% bonds, dated January 1, with a
face amount of $740 million on January 1, 2018. The bonds sold for
$671,914,968 and mature on December 31, 2037 (20 years). For bonds
of similar risk and maturity the market yield was 9%. Interest is
paid semiannually on June 30 and December 31. Required: 1. to 3.
Prepare the journal entry to record their issuance by Federal on
January 1, 2018, interest on June 30, 2018 (at the effective...
Federal Semiconductors issued 13% bonds, dated January 1, with a face amount of $780 million on...
Federal Semiconductors issued 13% bonds, dated January 1, with a
face amount of $780 million on January 1, 2018. The bonds sold for
$728,006,097 and mature on December 31, 2037 (20 years). For bonds
of similar risk and maturity the market yield was 14%. Interest is
paid semiannually on June 30 and December 31. Required: 1. to 3.
Prepare the journal entry to record their issuance by Federal on
January 1, 2018, interest on June 30, 2018 (at the effective...
Federal Semiconductors issued 8% bonds, dated January 1, with a face amount of $870 million on...
Federal Semiconductors issued 8% bonds, dated January 1, with a
face amount of $870 million on January 1, 2021. The bonds sold for
$789,954,084 and mature on December 31, 2040 (20 years). For bonds
of similar risk and maturity the market yield was 9%. 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...
Federal Semiconductors issued 8% bonds, dated January 1, with a face amount of $750 million on...
Federal Semiconductors issued 8% bonds, dated January 1, with a
face amount of $750 million on January 1, 2016. The bonds sold for
$680,994,058 and mature on December 31, 2032 (20 years). For bonds
of similar risk and maturity the market yield was 9%. Interest is
paid semiannually on June 30 and December 31. Federal determines
interest at the effective rate. Federal elected the option to
report these bonds at their fair value. On December 31, 2016, the
fair value...
Federal Semiconductors issued 12% bonds, dated January 1, with a face amount of $890 million on...
Federal Semiconductors issued 12% bonds, dated January 1, with a
face amount of $890 million on January 1, 2016. The bonds sold for
$827,052,405 and mature on December 31, 2032 (20 years). For bonds
of similar risk and maturity the market yield was 13%. Interest is
paid semiannually on June 30 and December 31. Federal determines
interest at the effective rate. Federal elected the option to
report these bonds at their fair value. On December 31, 2016, the
fair value...
Federal Semiconductors issued 9% bonds, dated January 1, with a face amount of $860 million on...
Federal Semiconductors issued 9% bonds, dated January 1, with a
face amount of $860 million on January 1, 2018. The bonds sold for
$786,215,929 and mature on December 31, 2037 (20 years). For bonds
of similar risk and maturity the market yield was 10%. Interest is
paid semiannually on June 30 and December 31. Federal determines
interest at the effective rate. Federal elected the option to
report these bonds at their fair value. On December 31, 2018, the
fair value...
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