Problem 10-3A (Part Level Submission) 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 Click if you would like to Show Work for this question: Open Show Work 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 Click if you would like to Show Work for this question: Open Show Work 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 Click if you would like to Show Work for this question: Open Show Work 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 Expense 20350 Interest Payable 40700 Cash 61050 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 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)