On March 1, 2020, TLM Inc. issued bonds with a $200,000 face value, a 9% contract rate and a 10% market rate. The bonds were issued for $192,000 and mature on Feb 28, 2025. The bonds pay interest on August 31st and February 28th. TLM Inc.s year end is December 31st.

Required:

1. Prepare the journal entry to record the sale or issuance of the bonds.

2. Prepare the journal entry to record the first semi-annual interest payment on August 31, 2020.

3. Prepare the journal entry to record the accrual of interest expense on December 31, 2020.

4. Prepare the journal entry to record the interest payment on February 28, 2021.

5. Prepare the journal entry to record the payment of the bonds at maturity.