Question: On March 1, 2024, Tanaka Lighting issued 14% bonds, dated March 1, with a face amount of $300,000. The bonds sold for $294,000 and

On March 1, 2024, Tanaka Lighting issued 14% bonds, dated March 1, with a face amount of $300,000.
∙ The bonds sold for $294,000 and mature on February 28, 2044 (20 years).
∙ Interest is paid semiannually on August 31 and February 28.
∙ Tanaka uses the straight-line method and its fiscal year ends December 31.

Required:
1. Prepare the journal entry to record the issuance of the bonds by Tanaka Lighting on March 1, 2024.
2. Prepare the journal entry to record interest on August 31, 2024.
3. Prepare the journal entry to accrue interest on December 31, 2024.
4. Prepare the journal entry to record interest on February 28, 2025.

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1 The journal entry is as follows i Cash is increased by 294000 ii Notes issued is increased by 3000... View full answer

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