General Entry for Stillworth Corporation

1. Record interest revenue for Stillworth Corporation as of August 31, 2016

2. Record interest revenue for Stillworth Corporation as of December 31, 2016

3. Record interest revenue for Stillworth Corporation as of February 28, 2017

4. Record interest revenue for Stillworth Corporation as of for August 31, 2017

5. Record interest revenue for Stillworth Corporation as of December 31, 2017

6. Record interest revenue for Stillworth Corporation as of February 28, 2018

7. Record interest revenue for Stillworth Corporation as of August 31, 2018

8. Record interest revenue for Stillworth Corporation as of December 31, 2018

9. Record interest revenue for Stillworth Corporation as of February 28, 2019

10. Record the receipt of the bond retirement proceeds by Stillworth Corporation.

On April 1, 2016, Western amount of $25 million. The bonds sold for $24.3 milion and mature on February 28, 2019. Interest is paid semiannually on August 31 and February 28. Stillworth Corporation acquired $25,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31, and both firms use the straight-line method. Inc., issued 12% bonds, dated March 1, 2016, with face Required 1. Prepare the journal entries to record (a) issuance of the bonds by Western and (b) Stillworth's investment on April 1, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollar.) Answer is complete and correct. No Date General Journal Debit Credit Cash 24,550,000 Discount on bonds payabl700,000 1April 01, 2016 Bonds payable Interest payable 25,000,000 250,000 2 April 01, 2016 Investment in bonds 250 Discount on bond investment Cash 700 4,550 2. Prepare the journal entries by both firms to record all subsequent events related to the bonds through t, select "No journal entry required" in the maturity. (If no entry is required for a first account field. Enter your answers in whole dollar.) Answer is complete and correct. No Date General Journal Debit Credit Interest expense 1,350,000 Interest payale 250,000 1 August 31, 2016 Discount on bonds payable Cash 100,000 ,500,000 2 December 31 Interest expense1,080,000 Discount on bonds payable 0,000 ,000,000 Interest payable 3 February 28, 2017 Interest expense 540,000 Interest payable,000,000 Discount on bonds payable Cash 40,000 ,500,000 4August 31, 2017 Interest expense 1,620,000 Discount on bonds payable Cash 120,000 ,500,000 5 December 31 Interest expense1,080,000 Discount on bonds payable 0,000 1,000,000 Interest payable Interest expens540,000 Interest payable1,000,000 February 28, 2018 40,000 ,500,000 Discount on bonds payable 7 August 31, 2018 Interest expense1,620,000 Discount on bonds payable 20,000 ,500,000 Interest expense1,080,000 Interest payable Interest expense540,000 8 December 31 80,000 ,000,000 Discount on bonds payable February 28, 201 Interest payable1,000,000 40,000 ,500,000 Discount on bonds payable 10 February 28, 201 Bonds payable25,000,000 Cash 5,000,000