Question: On February 1, 2013, Wolf Inc. issued 10% bonds dated February, 1, 2013, with a face amount of $200,000. The bonds sold for $239, 588

On February 1, 2013, Wolf Inc. issued 10% bonds dated February, 1, 2013, with a face amount of $200,000. The bonds sold for $239, 588 and mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on July 31 and January 31, Wolfs fiscal year is the calendar year. Wolf uses the effective interest method of amortization Required Prepare the Journal entry to record the bond issuance on February 1, 2013 Prepare the entry to record merest on July 31, 2013. Prepare the necessary journal entry on December 31, 2013. Prepare the necessary journal entry on January 31, 2014

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