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Federal Semiconductors issued 10% bonds, dated January 1 , with a face amount of $850...

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Accounting

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Federal Semiconductors issued 10% bonds, dated January 1 , with a face amount of $850 million on January 1, 2016. The bonds sold for $781,801,100 and mature on December 31 , 2035 (20 years). For bonds of similar risk and maturity the market yield was 11%. 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, 2016, interest on June 31, 2016 (at the effective rate) and interest on December 31, 2016 (at the effective rate). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) Journal entry worksheet Record the issuance of the bond on January 1,2016. Note: Enter debits before credits

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