On February 1, 2021, Strauss-Lombardi issued 10% bonds, dated February 1, with a face amount of $720,000. The bonds sold for $662,232 and mature on January 31, 2041 (20 years). The market yield for bonds of similar risk and maturity was 11%. Interest is paid semiannually on July 31 and January 31. Strauss-Lombardis fiscal year ends December 31.

No	Date	General Journal	Debit	Credit
1	February 01, 2021	Cash	662,232
		Discount on bonds payable	57,768
		Bonds payable		720,000
2	July 31, 2021	Interest expense
		Discount on bonds payable
		Cash
3	December 31, 2021	Interest expense
		Discount on bonds payable
		Interest payable
4	January 31, 2022	Interest expense
		Interest payable
		Discount on bonds payable
		Cash