On October $1,2021,$ Culver Corp. issued $\backslash$$$936,000,8\backslash \%,10-$year bonds at face value. The bonds were dated October $1,2021,$ and pay interest annually on October $1.$ Financial statements are prepared annually on December $31.$

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

Oct. $1,$

$2021$

List of Accounts

Prepare the adjusting entry to record the accrual of interest on December $31,2021.($Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

Date

Account Titles and Explanation

Debit

Credit

Dec. $31,$

$2021$ Show the balance sheet presentation of bonds payable and bond interest payable on December $31,2021.$

CULVER CORP. Balance Sheet $($Partial$)$

$[$

eTextbook and Media

List of Accounts

Prepare the journal entry to record the payment of interest on October $1,2022.($Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

Date

Account Titles and Explanation

Debit

Credit

Oct. $1,$

$2022$ 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.$)$

Date

Account Titles and Explanation

Debit

Credit

Dec. $31,$

$2022$

eTextbook and Media

List of Accounts

Assume that on January $1,2023,$ Culver pays the accrued bond interest and calls the bonds. The call price is $102.$ 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

$($To record payment of interest$)$

Jan. $1,$

$2023$

$($To record the redemption of the bonds$)$