Journal entry to record the issuance of the bond


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.

Prepare the journal entry to record the issuance of the bonds by Stratford Lighting on March 1, 2011.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Journal entry to record the issuance of the bond
Reference No:- TGS059810

Expected delivery within 24 Hours