Problem:
On March 1, 2011, Stratford Lighting issued 14% bonds, dated March 1, with a face amount of $400,000. The bonds sold for $392,000 and mature on February 28, 2036 (25 years). Interest is paid semiannually on August 31 and February 28. Stratford uses the straight-line method and its fiscal year ends December 31.
Q1. Prepare the journal entry to record interest on August 31, 2011.
Q2. Prepare the journal entry to accrue interest on December 31, 2011. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)
Q3. Prepare the journal entry to record interest on February 28, 2012. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)