Problem 10-4A On October 1, 2016, Kristal Corp. issued $700,000, 5%, 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. 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.) Account Titles and Explanation Date Debit Credit Oct. 1, 2016 Cash 700000 700000 Bonds Payable SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM Your answer is correct. 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.) Date Debit Credit Account Titles and Explanation Dec. 31, 2016 Interest Expense 8750 Interest Payable 8750 Your answer is correct Show the balance sheet presentation of bonds payable and bond interest payable on December 31, 2016 KRISTAL CORP. Balance Sheet (Partial) December 31, 2016 Current Liabilities 8750 Interest Payable Long-term Liabilities Bonds Payable 700000 SHOW LIST OF ACCOUNTS EXT LI LIN VIDEO: SIMILAR PROBLEM X Your answer is incorrect. Try again. 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.) Credit Date Account Titles and Explanation Debit X Oct. 1, 2017 SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO T LINK TO TXT VIDEO: SIMILAR PROBLEM X Your answer is incorrect. Try again. 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.) Account Titles and Explanation Date Debit Credit Dec 2017 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TXT VIDEO: SIMILAR PROBLEM XYour answer is incorrect. Try again. Assume that on January 1, 2018, Kristal 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.) X Your answer is incorrect. Try again. Assume that on January 1, 2018, Kristal 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) Open Show Work Click if you would like to Show Work for this question: SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TXT VIDEO: SIMILAR