On February 1, 2021, Strauss-Lombardi issued 9% bonds, dated February 1, with a face amount of $940,000. The bonds sold for $859,357 and mature on January 31, 2041 (20 years). The market yield for bonds of similar risk and maturity was 10%. Interest is paid semiannually on July 31 and January 31. Strauss-Lombardis fiscal year ends December 31.

Required: 1. to 4. Prepare the journal entries to record their issuance by Strauss-Lombardi on February 1, 2021, interest on July 31, 2021 (at the effective rate), adjusting entry to accrue interest on December 31, 2021 and interest on January 31, 2022.

1. Record the issuance of the bond on February 1, 2021.

2.Record the interest on July 31, 2021 (at the effective rate).

3.Record the accrued interest on December 31, 2021.

4.Record the interest on January 31, 2022.