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On October 1, 2016, Monty Corp. issued $828,000,7%, 10-year bonds at face value. The bonds were dated October 1, 2016, and pay interest annually on

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On October 1, 2016, Monty Corp. issued $828,000,7%, 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. 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, 2016 e Textbook and Media List of Accounts Attempts: 0 of 3 used Submit Answer Save for Later 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) Debit Credit Date Account Titles and Explanation Dec 31, 2016 Textbook and Media Show the balance sheet presentation of bonds payable and bond interest payable on December 31, 2016. MONTY CORP. Balance Sheet (Partial) eTextbook and Media List of Accounts Save for Later Attempts:0 of 3 used Id 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) Date Account Titles and Explanation Debit Credit Oct. 1, 2017 Prepare the adjusting entry to record the accrual of interest on December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec 31, 2017 e Textbook and Media List of Accounts Save for Later Attempts:0 of 3 used Submit Answer Assume that on January 1, 2018, Monty pays the accrued bond interest and calls the bonds. The call price is 104. 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)

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