On March 1, 2016, Stratford Lighting issued 14% bonds, dated March 1, with a face amount of $300,000. The bonds sold for $294,000 and mature on February 28, 2036 (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, 2016. 2. Prepare the journal entry to record interest on August 31, 2016. 3. Prepare the journal entry to accrue interest on December 31, 2016. 4. Prepare the journal entry to record interest on February 28, 2017.
On March 1, 2016, Stratford Lighting issued 14% bonds, dated March 1, with a face amount of $300,000. The bonds sold for $294,000 and mature on February 28, 2036 (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, 2016. 2. Prepare the journal entry to record interest on August 31, 2016. 3. Prepare the journal entry to accrue interest on December 31, 2016. 4. Prepare the journal entry to record interest on February 28, 2017.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 16E
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On March 1, 2016, Stratford Lighting issued 14% bonds, dated March 1, with a face amount of $300,000. The bonds sold for $294,000 and mature on February 28, 2036 (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
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