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The Bradford Company issued 8% bonds, dated January 1, with a face amount of $50 million on January 1, 2018 to Saxton-Bose Corporation. The bonds mature on December 31, 2037 (20 years). For bonds of similar risk and maturity the market yield is10%. Interest is paid semiannually on June 30 and December 31, Ev of$1, PV of $1, FVA of $1' PVA of 1, FVAD of $1 and PVAD of $D(Use appropriate factors) from the tables provided.) Required: . to 3. Prepare the journal entry to record the purchase of the bonds by Saxton-Bose on January 1, 2018, Interest revenue on June 30, 2018 and interest revenue on December 31, 2018 (at the effective rate).(Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1 Jauary 01 2018 2June 30 2018 3 31,2018 January 1, 2018 Interest $2,000,000Yx 17.15909 34,318,180 Principal S 50,000,000 x 0.14205**- 7,102,500 $41,420,680 Present value (price) of the bonds 4% $50,000,000 Present value of an ordinary annuity of $1: r-40, i-5% (PVA of $11 " Present value of $1n-40, i: 5% IPV of $1) 2. June 30, 2018 Cash 14% x S50,000,000-$2,000,000 Interest revenue (5% $41,420,680-$2,071,034 3. December 31, 2018 Cash 14% x S50,000,000-$2,000,000 Interest revenue (5% [$41,420,680 + S71,034) : $2,074,586 The Gorman Group issued S880.000 of 13% bonds on June 30, 2018, lor $946,202. The bonds were dated on June 30 and mature on June 30, 2038/20 years. The market yield for bonds of similar risk and maturity is 12% Interest is paid semiannualy on December 31 and June 30. Required: Complete the below table to record the company's journal entry. . to 3. Prepare the journal entry to record their issuance by The Gorman Group on June 30, 2018, Interest on December 31, 2018 and interest on June 30, 2019 (at the effective rate. Complete this question by entering your answers in the tabs below ulat... Req 1 to Complete the below table to record the company's journal entry. (Round intermediate calculations and final answers to the nearest whole dollar. Enter interest rate to 1 decimal place. (i.e. 0.123 should be entered as 12.3).) Show less Amount Total Interest expense Cash Amortization of premium on bonds June 30, 2019 Amount Total Interest expense Cash premium on bonds Calculation Req 1 to 3> 2. December 31, 2018 Interest expense (6% $946,202 $56.772 Cash (6.5% x $880,000) = $57,200 3. June 30, 2019 Interest expense 16% '$946,202-$428) Cash (6.5% x $880,000) = $57,200 S56.746 The Gorman Group issued $880,000 ot 13% bonds on June 30, 2018, lor $946,202. The bonds were dated on June 30 and mature on June 30, 2038 20 years. The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannualy on December 31 and June 30 Required: Complete the below table to record the company's journal entry. 1. to 3. Prepare the journal entry to record their ssuance by The Gorman Group on June 30, 2018, Interest on December 31, 2018 and interest on June 30, 2019 (at the effective rate Complete this question by entering your answers in the tabs below ulat Req 1 to Prepare the journal entry to record their issuance by The Gorman Group on June 30, 2018 interest on December 31, 2018 and interest on June 30, 2019 (at the effective rate). (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.) Show lessA 1June 30, 2018 2 31,2018 3June 30 2019 Calculation Rea 1 to 3 2. December 31, 2018 Interest expense 16% x $946,202,-$56,772 Cash (6.5% x $880,000-$57,200 3. June 30, 2019 Interest expense 16% '$946,202-$428) Cash (6.5% x $880,000-$57,200 S56.746

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