TB Problem 14-188 (Algo)

On February 1, 2021, Sanford & Son issued 10% bonds dated February 1, 2021, with a face amount of $240,000. The bonds sold for $287,503 and mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on July 31 and January 31. Sanford & Son's fiscal year is the calendar year. Required: 1. Prepare the journal entry to record the bond issuance on February 1, 2021. 2. Prepare the entry to record interest on July 31, 2021, using the straight-line method. 3. Prepare the necessary journal entry on December 31, 2021. 4. Prepare the necessary journal entry on January 31, 2022.