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The following section is taken from Skysong, Inc.'s balance sheet at December 31, 2019. Current liabilities Interest payable Long-term liabilities $ 113,200 Bonds payable, 8%,
The following section is taken from Skysong, Inc.'s balance sheet at December 31, 2019. Current liabilities Interest payable Long-term liabilities $ 113,200 Bonds payable, 8%, due January 1, 2022 1,415,000 Bond interest is payable annually on January 1. The bonds are callable on any interest date. (a) Journalize the payment of the bond interest on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Journalize the payment of the bond interest on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Assume that on January 1, 2020, after paying interest, Skysong calls bonds having a face value of $545,000. The call price is 103. Record the 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 Date Account Titles and Explanation Debit Credit Jan. 1 (c) Prepare the 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 Date Account Titles and Explanation Debit Credit Dec. 31
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