Question: On April 1, 2021 ABA communication issued 12% bonds, dated March 1, 2021 with a face amount of $30 million. The bonds sold for $29.3

On April 1, 2021 ABA communication issued 12% bonds, dated March 1, 2021 with a face amount of $30 million. The bonds sold for $29.3 million and mature on February 28, 2024. Interest is paid semiannually on August 31, and February 28, Diel Company acquired $30,000 of the bonds as a long-term investment. The fiscal year of both companies ends Decembers 31, and both companies use the straight-line method.

Required 1

prepare the journal entries to record (a) issuance of the bonds by ABC and (b) Diel company investments on April 1, 2021

Required 2

prepare the journal entries by both companies to record all the subsequent events related to the bonds through maturity

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