The Bradford Company issued 12% bonds, dated January 1, with aface amount of $96 million on January 1, 2018. The bonds mature onDecember 31, 2027 (10 years). For bonds of similar risk andmaturity, the market yield is 14%. Interest is paid semiannually onJune 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1,FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from thetables provided.) Required: 1. Determine the price of the bonds atJanuary 1, 2018. 2. to 4. Prepare the journal entry to record theirissuance by The Bradford Company on January 1, 2018, interest onJune 30, 2018 and interest on December 31, 2018 (at the effectiverate).
