On October 1, 2016, Culver Corp. issued $936,000, 8%, 10-year bonds at face value. The bonds...

  

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On October 1, 2016, Culver Corp. issued $936,000, 8%, 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. (a) 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.) Date Account Titles and Explanation Debit Credit Oct. 1, 2016 Cash 936,000 Bonds Payable 936,000 Click if you would like to Show Work for this question: Open Show Work Attempts: 1 of 1 used - (b) 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 Account Titles and Explanation Debit Credit Dec. 31, 2016 Interest Expense 18,720 Interest Payable 18,720 Click if you would like to Show Work for this question: Open Show Work (c) O Your answer is correct. Show the balance sheet presentation of bonds payable and bond interest payable on December 31, 2016. CULVER CORP. Balance Sheet (Partial) December 31, 2016 Current Liabilities Interest Payable 18,720 Long-term Liabilities Bonds Payable 936,000 Click if you would like to Show Work for this question: Open Show Work Attempts: 1 of 1 used - (d) Your answer is correct. 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.) Date Account Titles and Explanation Debit Credit Oct. 1, 2017 Interest Expense 56,160 Interest Payable 18,720 Cash 74,880 On October 1, 2016, Culver Corp. issued $936,000, 8%, 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. (a) 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.) Date Account Titles and Explanation Debit Credit Oct. 1, 2016 Cash 936,000 Bonds Payable 936,000 Click if you would like to Show Work for this question: Open Show Work Attempts: 1 of 1 used - (b) 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 Account Titles and Explanation Debit Credit Dec. 31, 2016 Interest Expense 18,720 Interest Payable 18,720 Click if you would like to Show Work for this question: Open Show Work (c) O Your answer is correct. Show the balance sheet presentation of bonds payable and bond interest payable on December 31, 2016. CULVER CORP. Balance Sheet (Partial) December 31, 2016 Current Liabilities Interest Payable 18,720 Long-term Liabilities Bonds Payable 936,000 Click if you would like to Show Work for this question: Open Show Work Attempts: 1 of 1 used - (d) Your answer is correct. 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.) Date Account Titles and Explanation Debit Credit Oct. 1, 2017 Interest Expense 56,160 Interest Payable 18,720 Cash 74,880