On October 1, 2021, Grouper Corp. issued $792,000, 5%, 10-year bonds at face value. The bonds were dated October 1, 2021, and pay interest annually on October 1. Financial statements are prepared annually on December 31.

Part 1:

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, 2021	enter an account title for the journal entry on October 1, 2021	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on October 1, 2021	enter a debit amount	enter a credit amount

List of accounts to pick from:

• Accounts Payable
• Accounts Receivable
• Accumulated Depreciation-Equipment
• Accrued Pension Liability
• Bonds Payable
• Buildings
• Cash
• Common Stock
• Cost of Goods Sold
• Current Portion of Long-Term Debt
• Depreciation Expense
• Discount on Bonds Payable
• Dividends
• Equipment
• Federal Income Taxes Payable
• Federal Unemployment Taxes Payable
• FICA Taxes Payable
• Gain on Bond Redemption
• Income Tax Expense
• Income Taxes Payable
• Insurance Expense
• Interest Expense
• Interest Payable
• Inventory
• Land
• Loss on Bond Redemption
• Mortgage Payable
• No Entry
• Notes Payable
• Other Operating Expenses
• Payroll Tax Expense
• Premium on Bonds Payable
• Prepaid Insurance
• Property Taxes Payable
• Retained Earnings
• Salaries and Wages Expense
• Salaries and Wages Payable
• Sales Revenue
• Sales Taxes Payable
• Service Revenue
• Share Premium-Conversion Equity
• State Income Taxes Payable
• State Unemployment Taxes Payable
• Subscription Revenue
• Ticket Revenue
• Unearned Rent Revenue
• Unearned Sales Revenue
• Unearned Service Revenue
• Unearned Subscription Revenue
• Unearned Ticket Revenue
• Union Dues Payable
• Warranty Liability

Part 2:

Prepare the adjusting entry to record the accrual of interest on December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2021	enter an account title for the adjusting entry on December 31, 2021	enter a debit amount	enter a credit amount
	enter an account title for the adjusting entry on December 31, 2021	enter a debit amount	enter a credit amount

Part 3:

Show the balance sheet presentation of bonds payable and bond interest payable on December 31, 2021.

GROUPER CORP. Balance Sheet (Partial) choose the accounting period For the Year Ended December 31, 2021December 31, 2021For the Month Ended December 31, 2021
select an opening name for subsection one Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
enter a balance sheet item			$enter a dollar amount
select an opening name for subsection two Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
enter a balance sheet item			enter a dollar amount

part 4:

Prepare the journal entry to record the payment of interest on October 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Oct. 1, 2022	enter an account title for the journal entry on October 1, 2022	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on October 1, 2022	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on October 1, 2022	enter a debit amount	enter a credit amount

Part 5:

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.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2022	enter an account title for the adjusting entry on December 31, 2022	enter a debit amount	enter a credit amount
	enter an account title for the adjusting entry on December 31, 2022	enter a debit amount	enter a credit amount

Part 6

Assume that on January 1, 2023, Grouper pays the accrued 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, 2023	enter an account title to record the payment of interest on January 1, 2018	enter a debit amount	enter a credit amount
	enter an account title to record the payment of interest on January 1, 2018	enter a debit amount	enter a credit amount
	(To record payment of interest)
Jan. 1, 2023	enter an account title to record the redemption of the bonds on January 1, 2018	enter a debit amount	enter a credit amount
	enter an account title to record the redemption of the bonds on January 1, 2018	enter a debit amount	enter a credit amount
	enter an account title to record the redemption of the bonds on January 1, 2018	enter a debit amount	enter a credit amount
	(To record the redemption of the bonds)