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The Bradford Company issued 12% bonds, dated January 1, with a face amount of $87...

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Accounting

The Bradford Company issued 12% bonds, dated January 1, with a face amount of $87 million on January 1, 2024.

The bonds mature on December 31, 2033 (10 years).

For bonds of similar risk and maturity, the market yield is 14%.

Interest is paid semiannually on June 30 and December 31.

Q/ Prepare the journal entries to record their issuance by The Bradford Company on January 1, 2024, interest on June 30, 2024 (at the effective rate) and interest on December 31, 2024 (at the effective rate).

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