50.1K

Verified Solution

Link Copied!

On October 1,2021, Swifty Corp. issued $720,000,6%,10-year bonds at face value. The bonds were dated October 1, 2021, and pay interest annualiy on Qctober 1 . Financial statements are prepared annually on December 31 Prepare the journal entry to record the issuance of the bonds. (Credit occount titles are automatically indented when amount is entered, Do not indent manually.) Prepare the adjusting entry to record the accrual of interest on December 31, 2021. (Credit account titles are automotically indented when amount is entered. Do not indent manually.) Show the balance sheet presentation of bonds payable and bond interest paryable on December 31,2021 . Prepare the journal entry to record the piryment of interest on October 1, 2022. (Credit account tities are automatically indented when amount is entered. Do not indent manually.) 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.) Assume that on January 1,2023, Swifty pays the accrued bond interest and calls the bonds. The call price is 105. Recond the payment of interest and redemption of the bonds. (Credit occount titles are automatically indented when amount is entered. Do not indent manually.)

Answer & Explanation Solved by verified expert

See Answer