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E 14-11 On February 1, 2012, Strauss-Lombardi issued 95 bonds, dated February I, with a principal amount of Bonds; effective $800,000. The bonds sold for
E 14-11 On February 1, 2012, Strauss-Lombardi issued 95 bonds, dated February I, with a principal amount of Bonds; effective $800,000. The bonds sold for $731,364 and mature on January 31,2032 (20 years). The market yield for interest; adjusting bonds of similar risk and maturity was 10%. Interest is paid semiannually on July 31 and January 31 . Straussentry Lombardi's financial year ends December 31 . - LO2 Required: 1. Prepare the journal entry to record their issuance by Strauss-Lombardi on February 1, 2012. 2. Prepare the journal entry to record interest on July 31,2012 (at the effective rate). 3. Prepare the adjusting entry to accrue interest on December 31,2012. 4. Prepare the journal entry to record interest on January 31, 2013
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