Question
On March 1, 2024, Tanaka Lighting issued 14% bonds, dated March 1, with a face amount of $390,000. The bonds sold for $372,000 and mature
On March 1, 2024, Tanaka Lighting issued 14% bonds, dated March 1, with a face amount of $390,000. The bonds sold for $372,000 and mature on February 28, 2044 (20 years). Interest is paid semiannually on August 31 and February 28. Tanaka uses the straight-line method and its fiscal year ends December 31. Required: 1. to 4. Prepare the journal entries to record the issuance of the bonds by Tanaka Lighting on March 1, 2024, interest on August 31, 2024, accrued interest on December 31, 2024 and interest on February 28, 2025.
Record the issuance of the bond on March 1, 2024.
Record the interest on August 31, 2024.
Record the accrued interest on December 31, 2024.
Record the interest on February 28, 2025.
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Financial Accounting The Cornerstone Of Business Decision Making
Authors: Jay S Rich, Jeff Jones, Linda Ann Myers
5th Edition
0357132696, 978-0357132692
