On March 1, 2013, Stratford Lighting issued 12% bonds, dated March 1, with a face amount of $630,000. The bonds sold for $621,000 and mature on February 28, 2033 (20 years). Interest is paid semiannually on August 31 and February 28. Stratford uses the straight-line method and its fiscal year ends December 31.

Required:

1.

Prepare the journal entry to record the issuance of the bonds by Stratford Lighting on March 1, 2013. (If no entry is required for a transaction, select "No journal entry required" in the first account field.)

Date	General Journal	Debit	Credit
March 01, 2013	Cash
	Discount on bonds payable
	Bonds payable

2.

Prepare the journal entry to record interest on August 31, 2013. (If no entry is required for a transaction, select "No journal entry required" in the first account field.)

Date	General Journal	Debit	Credit
August 31, 2013	Interest expense
	Discount on bonds payable
	Cash

3.

Prepare the journal entry to accrue interest on December 31, 2013. (If no entry is required for a transaction, select "No journal entry required" in the first account field.)

Date	General Journal	Debit	Credit
December 31, 2013	Interest expense
	Discount on bonds payable
	Interest payable

4.

Prepare the journal entry to record interest on February 28, 2014. (If no entry is required for a transaction, select "No journal entry required" in the first account field.)

Date	General Journal	Debit	Credit
February 28, 2014	Interest payable
	Interest expense
	Discount on bonds payable
	Cash