On May 1, 2019, Sheridan Company issued $555,000, 11%, 5-year bonds at face value. The bonds were dated May 1, 2019, and pay interest annually on May 1. Financial statements are prepared annually on December 31. (a) 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 May 1, 2019 Cash 555000 Bonds Payable 555000 e Textbook and Media List of Accounts Attempts: 1 of 5 used (b) Your answer is correct. Prepare the adjusting entry to record the accrual of interest on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2019 Interest Expense 40700 Interest Payable 40700 e Textbook and Media List of Accounts Attempts: 1 of 5 used Your answer is correct. Show the balance sheet presentation on December 31, 2019. (Enter account name only and do not provide descriptive information.) Sheridan Company Balance Sheet December 31, 2019 Current Liabilities Interest Payable 40700 Long-term Liabilities Bonds Payable 555000 e Textbook and Media List of Accounts Attempts: 3 of 5 used (d) Your answer is correct. Prepare the journal entry to record payment of interest on May 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit May 1, 2020 Interest Payable 40700 Interest Expense 20350 Cash 61050 e Textbook and Media List of Accounts Attempts: 1 of 5 used Your answer is correct. Prepare the adjusting entry to record the accrual of interest on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Interest Expense 40700 Interest Payable 40700 e Textbook and Media List of Accounts Attempts: 2 of 5 used Assume that on January 1, 2021, Sheridan pays the accrued bond interest and calls the bonds at 101. 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, 2021 (To record payment of interest) Jan. 1, 2021 (To record redemption of bonds)