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Problem 10-4A On October 1, 2016, Ayayai Corp. issued $720,000, 5%, 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 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 Oct. 1, 20160 Credit 720ND conds Prepare the adjusting entry to record the acerual 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 gAtD Show the balance sheet presentation of bonds payable and bond interest payable on December 31, 2016 AYAYAI CORP Balance Sheet (Partial) Prepare the journal entry to record the payment of interest on October 1, 2017. (Credit account tities are automatically Indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation 20ors Pay9 Debit Credit ,000 Oct. 1, 2017 hleest Ex Prepare the adjusting entry to record the accrual of interest on December 31, 2017. (Credit account titles are automatcally indented when amount is entered. Do not indent Date Account Titlies and Explanation Debit Credit Dec. 31, 2017 Assume that on January 1, 2018, Ayayai 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 manualy) Date Account Titles and Explanation 1, 2018 Debit Credit Jan. 1, 2018n d.000 Cash To record payment of interest) Jan. 1, 2018O 120AD (To record the redemption of the

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