On April 1, 2018, Western Communications, Inc., issued 12%
bonds, dated March 1, 2018, with face amount of $32 million. The
bonds sold for $31.3 million and mature on February 28, 2021.
Interest is paid semiannually on August 31 and February 28.
Stillworth Corporation acquired $32,000 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...