On February 1, 2021, Strauss-Lombardi issued 8% bonds, dated February 1, with a face amount of...
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On February 1, 2021, Strauss-Lombardi issued 8% bonds, dated February 1, with a face amount of $810,000. The bonds sold for $735,474 and mature on January 31, 2041 (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: 1. to 4. Prepare the journal entries to record their issuance by Strauss-Lombardi on February 1, 2021, interest on July 31, 2021 (at the effective rate), adjusting entry to accrue interest on December 31, 2021 and interest on January 31, 2022. (Do not round your intermediate calculations and round your final answers to nearest whole dollar. If no entry is required for a transaction/levent, select "No journal entry required" in the first account field.) View transaction list View transaction list Journal entry worksheet 1 2 3 4 > Record the issuance of the bond on February 1, 2021. Note: Enter debits before credits. Date General Journal Debit Credit February 01, 2021 1 > Record the interest on July 31, 2021 (at the effective rate). Note: Enter debits before credits. Date General Journal Debit Credit July 31, 2021 3. 1 3 4 Record the accrued interest on December 31, 2021. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2021 2. 1 2 Record the interest on January 31, 2022. Note: Enter debits before credits. Date General Journal Debit Credit January 31, 2022 On February 1, 2021, Strauss-Lombardi issued 8% bonds, dated February 1, with a face amount of $810,000. The bonds sold for $735,474 and mature on January 31, 2041 (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: 1. to 4. Prepare the journal entries to record their issuance by Strauss-Lombardi on February 1, 2021, interest on July 31, 2021 (at the effective rate), adjusting entry to accrue interest on December 31, 2021 and interest on January 31, 2022. (Do not round your intermediate calculations and round your final answers to nearest whole dollar. If no entry is required for a transaction/levent, select "No journal entry required" in the first account field.) View transaction list View transaction list Journal entry worksheet 1 2 3 4 > Record the issuance of the bond on February 1, 2021. Note: Enter debits before credits. Date General Journal Debit Credit February 01, 2021 1 > Record the interest on July 31, 2021 (at the effective rate). Note: Enter debits before credits. Date General Journal Debit Credit July 31, 2021 3. 1 3 4 Record the accrued interest on December 31, 2021. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2021 2. 1 2 Record the interest on January 31, 2022. Note: Enter debits before credits. Date General Journal Debit Credit January 31, 2022
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Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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