On April 1, 2024, Western Communications, Incorporated, issued 12% bonds, dated March 1, 2024, with face...

Transcribed Image Text:

On April 1, 2024, Western Communications, Incorporated, issued 12% bonds, dated March 1, 2024, with face amount of $31 million. The bonds sold for $30.3 million and mature on February 28, 2027. Interest is paid semiannually on August 31 and February 28. Stillworth Corporation acquired $31,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31, and both firms use the straight-line method. Required: 1. Prepare the journal entries to record (a) issuance of the bonds by Western and (b) Stillworth's investment on April 1, 2024. 2. Prepare the journal entries by both firms to record all events related to the bonds through maturity. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Western Req 2 Stillworth Prepare the journal entries to record (a) issuance of the bonds by Western and (b) Stillworth's investment on April 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars. View transaction list View journal entry worksheet No Date General Journal 1 April 01, 2024 Cash Discount on bonds payable Bonds payable Debit Credit 37,300,000 700,000 31,000,000 2 April 01, 2024 Investment in bonds 31,000,000 Discount on investment in bonds 7,000,000 Cash 1,860,000 < Req 1 Req 2 Western > On April 1, 2024, Western Communications, Incorporated, issued 12% bonds, dated March 1, 2024, with face amount of $31 million. The bonds sold for $30.3 million and mature on February 28, 2027. Interest is paid semiannually on August 31 and February 28. Stillworth Corporation acquired $31,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31, and both firms use the straight-line method. Required: 1. Prepare the journal entries to record (a) issuance of the bonds by Western and (b) Stillworth's investment on April 1, 2024. 2. Prepare the journal entries by both firms to record all events related to the bonds through maturity. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Western Req 2 Stillworth Prepare the journal entries to record (a) issuance of the bonds by Western and (b) Stillworth's investment on April 1, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars. View transaction list View journal entry worksheet No Date General Journal 1 April 01, 2024 Cash Discount on bonds payable Bonds payable Debit Credit 37,300,000 700,000 31,000,000 2 April 01, 2024 Investment in bonds 31,000,000 Discount on investment in bonds 7,000,000 Cash 1,860,000 < Req 1 Req 2 Western >