Question
On April 1, 2021 Lucas Communication, Inc. Issued 12% bonds , dated March1, 2021 with a face amount of $30 million. The bonds sold for
On April 1, 2021 Lucas Communication, Inc. Issued 12% bonds , dated March1, 2021 with a face amount of $30 million. The bonds sold for $29.3 million and mature on February 28, 2024. Interest is paid semiannually on August31 and February 28, Diel Corporation acquired $30,000 of the bonds as a long-term investment. The fiscal years for both companies end December 31, and both company use the straight-line method.
Required:
1. Prepare the journal entries to record (a) issuance of the bonds by Lucas and (b) Diel investment on April1, 2021
2 Prepare the journal entries by both companies to record all subsequent events related to the bonds through maturity.
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