9.

On February 1, 2024, Strauss-Lombardi issued 11% bonds, dated February 1, with a face amount of $900,000.

• The bonds sold for $832,290 and mature on January 31, 2044 (20 years).
• The market yield for bonds of similar risk and maturity was 12%.
• Interest is paid semiannually on July 31 and January 31.
• Strauss-Lombardis 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.

Record the interest on January 31, 2025. Note: Enter debits before credits