On April 1, 2021, Western Communications, Inc., issued 12% bonds, dated March 1, 2021, with face amount of $30 million. The bonds sold for $29.3 million and mature on February 28, 2024. Interest is paid semiannually on August 31 and February 28. Stillworth Corporation acquired $30,000 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) Stillworths investment on April 1, 2021. 2. Prepare the journal entries by both firms to record all subsequent events related to the bonds through maturity

1. Prepare the journal entries to record (a) issuance of the bonds by Western and (b) Stillworths investment on April 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

Number	Date	General Journal	Debit	Credit
1	4/1/2021	Cash	29,600,000
		Discount on bonds payable	700,000
		Bonds payable		30,000,000
		Interest payable		300,000
2	4/1/2021	Investment in bonds	30,000
		Interest receivable	300
		Discount on investment in bonds		700
		Cash		29,600

2a. Prepare the journal entries for Western Communications, Inc., to record all subsequent events related to the bonds through maturity. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

Number	Date	General Journal	Debit	Credit
1	8/31/2021	Interest expense	1,600,000
		Interest payable	300,000
		Discount on bonds payable		100,000
		Cash		1,800,000

2b. Prepare the journal entries for Stillworth Corporation to record all subsequent events related to the bonds through maturity. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

Record interest revenue for Stillworth Corporation until February 28,2024 (through number 9). On February 28, 2024, record receipt of the bond retirement proceeds by Stillworth Corporation (as number 10).

Number	Date	General Journal	Debit	Credit
1	8/31/2021
2	12/31/2021
3	2/28/2022
4	8/31/2022
5	12/31/2022
6	2/28/2023
7	8/31/2023
8	12/31/2023
9	2/28/2024
10	2/28/2024