Sandhill Company issued $368,000 of 4%, 10-year bonds on January 1, 2021, at face value. Interest is payable annually on January 1, 2022.

Your answer is partially correct. Assuming Sandhill has a September 30 year end, prepare the adjusting journal entry needed on September 30, 2021, and prepare the journal entry to record the interest payment on January 1, 2022, assuming reversing entries have not been used. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Sept. 30, 2021 Interest Expense X 14720 x Interest Payable 14720 (To accrue interest expense.) Jan. 1, 2022 Interest Expense 14720 V Interest Payable 353280 X Cash 368,000 (To record interest payment.)