On February 1, 2018, Strauss-Lombardi issued 8% bonds, datedFebruary 1, with a face amount of $630,000. The bonds sold for$572,036 and mature on January 31, 2038 (20 years). The marketyield for bonds of similar risk and maturity was 9%. Interest ispaid semiannually on July 31 and January 31. Strauss-Lombardi’sfiscal year ends December 31.
Required:
1. to 4. Prepare the journal entry to record theirissuance by Strauss-Lombardi on February 1, 2018, interest on July31, 2018 (at the effective rate), adjusting entry to accrueinterest on December 31, 2018 and interest on January 31, 2019.(Do not round your intermediate calculations and round yourfinal answers to nearest whole dollar. If no entry is required fora transaction/event, select "No journal entry required" in thefirst account field.)
