Crop Corporation (with a December 31 year-end) issued $432,000, 10% bonds due in 9 years on May 1, 2020. Interest is paid semi-annually on October 31 and April 30 of each year. On the issuance date, the market rate of interest was 9%, resulting in a price of $458,300 for these bonds. The premium/discount is amortized using the straight line amortization method.

Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. For transactions with more than one debit or credit, enter the accounts in alphabetical order. a) Is this bond issued at a discount or at a premium?: AnswerDiscountPremium Prepare the journal entry on May 1, 2020, to issue the bonds.

Date	Account Title and Explanation	Debit	Credit
May 1	AnswerAccounts PayableAccounts ReceivableBonds PayableCashDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenuePremium on BondsSales Revenue	Answer
	AnswerAccounts PayableAccounts ReceivableBonds PayableCashDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenuePremium on BondsSales Revenue		Answer
	AnswerAccounts PayableAccounts ReceivableBonds PayableCashDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenuePremium on BondsSales Revenue		Answer
	Issued bonds

b) Prepare the journal entry on October 31, 2020, to record the first interest payment and the amortization of the premium/discount.

Date	Account Title and Explanation	Debit	Credit
Oct 31	AnswerAccounts PayableAccounts ReceivableBonds PayableCashDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenuePremium on BondsSales Revenue	Answer
	AnswerAccounts PayableAccounts ReceivableBonds PayableCashDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenuePremium on BondsSales Revenue	Answer
	AnswerAccounts PayableAccounts ReceivableBonds PayableCashDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenuePremium on BondsSales Revenue		Answer
	Paid interest on bonds

c) Prepare the adjusting entry on December 31, 2020.

Date	Account Title and Explanation	Debit	Credit
Dec 31	AnswerAccounts PayableAccounts ReceivableBonds PayableCashDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenuePremium on BondsSales Revenue	Answer
	AnswerAccounts PayableAccounts ReceivableBonds PayableCashDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenuePremium on BondsSales Revenue	Answer
	AnswerAccounts PayableAccounts ReceivableBonds PayableCashDiscount on BondsInterest ExpenseInterest PayableInterest ReceivableInterest RevenuePremium on BondsSales Revenue		Answer
	Accrued interest on bonds

d) Show the balance sheet presentation of Bonds Payable and related accounts as at December 31, 2020.

Bonds Payable	$Answer
Unamortized Premium/Discount	$Answer
Book Value	$Answer