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Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of...

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Accounting

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?

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