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On May 1, 2022, Sandhill Corp, issued $ 870,000, 11%, 5-year bonds at face value. The bonds were dated May 1, 2022, and pay Interest

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On May 1, 2022, Sandhill Corp, issued $ 870,000, 11%, 5-year bonds at face value. The bonds were dated May 1, 2022, 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 Debit Credit Date Account Tities and Explanation 370000 May 1 Cash 2022 70000 Bonds Payable Prepare the adjusting entry to record the accrual of interest on December 31, 2022 (Credit account titles are automatically indented when amount is entered. Do not indent manually) Debit Credit Date Account Titles and Explanation Dec 31, Interest Expense 2022 63800 Interest Payable 63800 Show the balance sheet presentation on December 31, 2022. (Enter account name only and do not provide descriptive information) Sandhill Corp Balance Sheet (Partial) December 31, 3022 Current Liabilities terest Pwable 63.800 Long termine Bonds Paul 70.000 Prepare the journal entry to record payment of interest on May 1, 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit May 1 2023 Prepare the adjusting entry to record the accrual of interest on December 31, 2023. (Credit account titles are automatically Indented when amount is entered. Do not indent manually) Debit Credit Date Account Titles and Explanation Dec 31 2023 Assume that on January 1, 2024, Sandhill pays the accrual bond interest and calls the bonds. The call price is 102. 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 2024 (To record payment of interest) Jan. 1 2024 (To record redemption of the bonds)

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