On February 1, 2024, Strauss-Lombardi issued 9% bonds, dated February 1, with a face amount of $780,000. • The bonds sold for $713,083 and mature on January 31, 2044 (20 years). • The market yield for bonds of similar risk and maturity was 10%. • 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, 2024, interest on July 31, 2024 (at the effective rate), adjusting entry to accrue interest on December 31, 2024 and interest on January 31, 2025. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list
On February 1, 2024, Strauss-Lombardi issued 9% bonds, dated February 1, with a face amount of $780,000. • The bonds sold for $713,083 and mature on January 31, 2044 (20 years). • The market yield for bonds of similar risk and maturity was 10%. • 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, 2024, interest on July 31, 2024 (at the effective rate), adjusting entry to accrue interest on December 31, 2024 and interest on January 31, 2025. Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On February 1, 2024, Strauss-Lombardi issued 9% bonds, dated February 1, with a face amount of $780,000.
• The bonds sold for $713,083 and mature on January 31, 2044 (20 years).
• The market yield for bonds of similar risk and maturity was 10%.
• 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, 2024, interest on July 31, 2024 (at the
effective rate), adjusting entry to accrue interest on December 31, 2024 and interest on January 31, 2025.
Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar. If no entry is required for a
transaction/event, select "No journal entry required" in the first account field.
View transaction list
Journal entry worksheet
1
2
3
Record the issuance of the bond on February 1, 2024.
Note: Enter debits before credits.
Date
February 01, 2024
4
General Journal
Debit
Credit
>
![Journal entry worksheet
< 1
2
Record the interest on July 31, 2024 (at the effective rate).
Note: Enter debits before credits.
Date
July 31, 2024
Show Transcribed Text
<
3
1 2
Journal entry worksheet
Date
December 31, 2024
4
3
Note: Enter debits before credits.
Show Transcribed Text
General Journal
4
Record the accrued interest on December 31, 2024.
S
Journal entry worksheet
< 1 2 3
[4]
c
General Journal
Record the interest on January 31, 2025.
c
Debit
Debit
Credit
Credit
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1a063afd-1328-45c9-8108-d6b0d29797d8%2F423996ee-52db-457b-baef-9aa544e174e6%2Fj5vwkw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Journal entry worksheet
< 1
2
Record the interest on July 31, 2024 (at the effective rate).
Note: Enter debits before credits.
Date
July 31, 2024
Show Transcribed Text
<
3
1 2
Journal entry worksheet
Date
December 31, 2024
4
3
Note: Enter debits before credits.
Show Transcribed Text
General Journal
4
Record the accrued interest on December 31, 2024.
S
Journal entry worksheet
< 1 2 3
[4]
c
General Journal
Record the interest on January 31, 2025.
c
Debit
Debit
Credit
Credit
>
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