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I have the first requirement figured out, but it's the other 2 requirements that I need help with On April 1. 2018, Western Communications, Inc.,
I have the first requirement figured out, but it's the other 2 requirements that I need help with
On April 1. 2018, Western Communications, Inc., issued 12% bonds, dated March 1, 2018, with face amount of $48 million. The bonds sold for $47.3 million and mature on February 28, 2021. Interest is paid semiannually on August 31 and February 28 Stillworth Corporation acquired $48.000 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. Required: 1. Prepare the journal entries to record (a) issuance of the bonds by Western and (b) Stillworth's Investment on April 1. 2018 2. Prepare the journal entries by both firms to record all subsequent events related to the bonds through maturity dollars.) View transaction list Journal entry worksheet 23 4 5 6 7 OD 9 10 Record interest expense for Western Communications. Note: Enter debits before credits Debit Credit Date General Journal August 31, 2018 Interest expense interest payable Discount on bonds payable Cash Record entry Clear entry Journal entry worksheet 2 3 4 5 6 7 CO 9 10 > Record interest revenue for Stillworth Corporation. Note: Enter debits before credits Date General Journal Debit Credit August 31 2018 Record entry Clear entry View general journalStep by Step Solution
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