Question - Universal Foods issued 10% bonds, dated January 1, with a face amount of $150 million on January 1, 2016. The bonds mature on December 31, 2030 (15 years). The market rate of interest for similar issues was 12%. Interest is paid semiannually on June 30 and December 31. Universal uses the straight-line method.
Prepare the journal entry to record their issuance by Universal Foods on January 1, 2016, interest on June 30, 2016 and interest on December 31, 2023.