Question: Problem 10-03A a-f (Video) On May 1, 2020, Herron Corp. issued $600,000, 9%, 5-year bonds at face value. The bonds were dated May 1, 2020,

1, 2020, and pay interest annually on May 1. Financial statements are

prepared annually on December 31. Prepare the journal entry to record the

Problem 10-03A a-f (Video) On May 1, 2020, Herron Corp. issued $600,000, 9%, 5-year bonds at face value. The bonds were dated May 1, 2020, and pay interest annually on May 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 May 1, 2020 cash 600000 bonds payable 600000 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM Prepare the adjusting 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 Credit Debit 36000 Dec. 31, 2020 interest expense interest payable 36000 Show the balance sheet presentation on December 31, 2020. (Enter account name only and do not provide descriptive information.) Herron Corp. Balance Sheet December 31, 2020 Long-term Liabilities bonds payable 600000 Current Liabilities interest payable 36000 Prepare the journal entry to record payment of interest on May 1, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation May 1, 2021 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM 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.) Debit Credit Date Account Titles and Explanation Dec. 31, 2021 Assume that on January 1, 2022, Herron pays the accrued bond interest and calls the bonds at 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.) Debit Credit Date Account Titles and Explanation Jan. 1, 2022 (To record payment of interest) Jan. 1, 2022 (To record redemption of bonds)

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