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can someone help me this question? Problem 10-4A (Part Level Submission) On October 1, 2016, Swifty Corp. issued $720,000, 690, 10-year bonds at face value.
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Problem 10-4A (Part Level Submission) On October 1, 2016, Swifty Corp. issued $720,000, 690, 10-year bonds at face value. The bonds were dated October 1, 2016, and pay interest annually on October 1. Financial statements are prepared annually on December 31. Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Oct. 1, 720000 2016 Cash Bonds Payable 720000 Click if you would like to Show Work for this question: Open Show Work Your answer is correct. Prepare the adjusting entry to record the accrual of interest on December 31, 2016. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2016 Interest Expense 10800 Interest Payable 10800 Click if you would like to Show Work for this question: Open Show Work Your answer is correct. Show the balance sheet presentation of bonds payable and bond interest payable on December 31, 2016 SWIFTY CORP Balance Sheet (Partial) December 31, 2016 Current Liabilities 10800 Interest Payable Long-term Liabilities Bonds Payable 720000 Click if you would like to Show Work for this question: Open Show Work Your answer is correct. Prepare the journal entry to record the payment of interest on October 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Date Oct. 1, 2017 Account Titles and Explanation Credit Interest Expense 32,400 Interest Payable 10800 Cash 43,200 Click if you would like to Show Work for this question: Open Show Work Assume that on January 1, 2018, Swifty pays the accrued bond interest and calls the bonds. The call price is 105. Record the payment of interest and redemption of the bonds. Credit account titles are automatically indented when amount is entered. Do not indent manually. Date Account Titles and Explanation Debit Credit Jan. 1, 2018 (To record payment of interest) Jan. 1 2018 (To record the redemption of the bonds)Step by Step Solution
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