On March 1, 2022, Stratford Lighting issued 14% bonds, dated March 1, with a principal amount...

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Accounting

On March 1, 2022, Stratford Lighting issued 14% bonds, datedMarch 1, with a principal amount of $300,000. The bonds sold for$294,000 and mature on February 28, 2042 (20 years). Interest ispaid semiannually on August 31 and February 28. The market yieldfor bonds of similar risk and maturity was 14.3%.
Required:
1. to 4. Prepare the journal entry to record theissuance of the bonds by Stratford Lighting on March 1, 2022,interest on August 31, 2022, interest on December 31, 2022 andinterest on February 28, 2023. (Do not round intermediatecalculations. If no entry is required for a transaction/event,select "No journal entry required" in the first accountfield.)

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Date Account Tittles and Explanation Debit Credit 2022 01Mar Cash 294000 Bonds Discount 6000 Bonds Payable 300000 Bonds issued at Discount 31Aug Interest Expense 21000 Cash 21000 Interest paid for 6 months 31Aug See Answer

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