Exercise 14-11 (Algo) Bonds; effective interest; adjusting entry [LO14-2] On February 1, 2021, Strauss Lombardi Issued 9

[answerhappygod]

Exercise 14 11 Algo Bonds Effective Interest Adjusting Entry Lo14 2 On February 1 2021 Strauss Lombardi Issued 9 1 (41.18 KiB) Viewed 21 times

Exercise 14-11 (Algo) Bonds; effective interest; adjusting entry [LO14-2] On February 1, 2021, Strauss Lombardi Issued 9% bonds, dated February 1, with a face amount of $920,000. The bonds sold for $841,072 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-Lombardi's 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 (Do not round your intermediate calculations and round your final answers to nearest whole dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 34 Record the Issuance of the bond on February 1, 2021 Note: Enter debits before credits General Journal Debit Credit Dale Fobruary 01, 2021 111