Exercise $14-11($Algo$)$ Bonds; effective interest; adjusting entry $[$LO$14-2]$

On February $1,2024,$ Strauss$-$Lombardi issued $8\%$ bonds, dated February $1,$ with a face amount of $$600,000.$

The bonds sold for $$544,796$ and mature on January $31,2044(20$ years$).$

The market yield for bonds of similar risk and maturity was $9\%.$

Interest is paid semiannually on July $31$ and January $31.$

Strauss$-$Lombardi's fiscal year ends December $31.$

Required:

to $4.$ Prepare the journal entries to record their issuance by Strauss$-$Lombardi on February $1,2024,$ interest on July $31,2024($at the effective rate$),$ adjusting entry to accrue interest on December $31,2024$ and interest on January $31,2025.$

Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first occount field.

Journal entry worksheet

$1$

$2$

$3$

$4$