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*Problem 10-4A On October 1, 2016, Swifty Corp. issued $720,000, 6%, 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.) Debit Credit Date Account Titles and Explanation Oct. 1, 2016 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.) Account Tities and Explanation Debit Credit Date Dec. 31, 2016 Show the balance sheet presentation of bonds payable and bond interest payable on December 31, 2016. SWIFTY CORP Balance Sheet (Partial) 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.) Debit Credit Date Account Titles and Explanation Oct. 1, 2017 Prepare the adjusting entry to record the accrual of interest on December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Dec. 31, 2017 Assume that on January 1, 2018, Swifty pays the accrued bond interest and calls the bonds. The call price is 105. Record the payment of interest and redemption of the bonds. (Credit account ttles are automatically indented when amount is entered. Do not indent manually. Debit Credit Date Account Titles and Explanation Jan. 1, 2018 (To record payment of interest) Jan. 1, 2018 (To record the redemption of the bonds)

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