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On April 1, 2024, Western Communications, Incorporated, issued 12% bonds, dated March 1, 2024, with face amount of $31 million. • The bonds sold for $30.3 million and mature on February 28, 2027. • Interest is paid semiannually on August 31 and February 28. • Stillworth Corporation acquired $31,000 of the bonds as a long-term investment. • The fiscal years of both firms end December 31, and both firms use the straight-line method. Required: 1. Prepare the journal entries to record (a) issuance of the bonds by Western and (b) Stillworth's investment on April 1, 2024. 2. Prepare the journal entries by both firms to record all events related to the bonds through maturity.

On April 1, 2024, Western Communications, Incorporated, issued 12% bonds, dated March 1, 2024, with face amount of $31 million. • The bonds sold for $30.3 million and mature on February 28, 2027. • Interest is paid semiannually on August 31 and February 28. • Stillworth Corporation acquired $31,000 of the bonds as a long-term investment. • The fiscal years of both firms end December 31, and both firms use the straight-line method. Required: 1. Prepare the journal entries to record (a) issuance of the bonds by Western and (b) Stillworth's investment on April 1, 2024. 2. Prepare the journal entries by both firms to record all events related to the bonds through maturity.

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter15: Investments And Fair Value Accounting
Section: Chapter Questions
Problem 5E
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On April 1, 2024, Western Communications, Incorporated, issued 12% bonds, dated March 1, 2024, with face amount of $31 million. • The bonds sold for $30.3 million and mature on February 28, 2027. • Interest is paid semiannually on August 31 and February 28. • Stillworth Corporation acquired $31,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31, and both firms use the straight-line method. Required: 1. Prepare the journal entries to record (a) issuance of the bonds by Western and (b) Stillworth's investment on April 1, 2024. 2. Prepare the journal entries by both firms to record all events related to the bonds through maturity. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Western Req 2 Stillworth Prepare the journal entries for Stillworth Corporation to record all events related to the bonds through mat Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account whole dollars. View transaction list View journal entry worksheet
Transcribed Image Text:On April 1, 2024, Western Communications, Incorporated, issued 12% bonds, dated March 1, 2024, with face amount of $31 million. • The bonds sold for $30.3 million and mature on February 28, 2027. • Interest is paid semiannually on August 31 and February 28. • Stillworth Corporation acquired $31,000 of the bonds as a long-term investment. The fiscal years of both firms end December 31, and both firms use the straight-line method. Required: 1. Prepare the journal entries to record (a) issuance of the bonds by Western and (b) Stillworth's investment on April 1, 2024. 2. Prepare the journal entries by both firms to record all events related to the bonds through maturity. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Western Req 2 Stillworth Prepare the journal entries for Stillworth Corporation to record all events related to the bonds through mat Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account whole dollars. View transaction list View journal entry worksheet
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