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  3. on january 1, 2021, scabbers company issued 10% bo

On January 1, 2021, Scabbers Company issued 10% bonds with a face amount of $2,500,000....

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On January 1, 2021, Scabbers Company issued 10% bonds with a face amount of $2,500,000. The bonds mature in 2030 (10 years). For bonds of similar risk and maturity, the market rate 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) (You can use Excel, your financial calculator or the PV Tables.) 1. Determine the price of the bonds at January 1, 2021. 2. Prepare the journal entry to record the bond issuance by Scabbers on January 1, 2021. 3. Prepare the journal entry to record interest on June 30, 2021, using the effective interest method. 4. Prepare the journal entry to record interest on December 31, 2021, using the effective interest method. Complete this question by entering your answers in the tabs below. Bond Issue Journal Entries Price Determine the price of the bonds at January 1, 2021. Bond value

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