70.2K

Verified Solution

Link Copied!

The following section is taken from Concord Corporation's balance sheet at December $31,2021.$

Current liabilities

Interest payable

$$70,750$

Long$-$term liabilities

Bonds payable, $5\%,$ due January $1,2024,1,415,000$

Bond interest is payable annually on January $1.$ The bonds are callable on any interest date.

$($a$)$

$1$

Journalize the payment of the bond interest on January $1,2022.($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

$\backslash$table$[[$Date Account Titles and Explanation Debit$],[$Jan$.1]]$

Credit

$($b$)$

Assume that on January $1,2022,$ after paying interest, Concord calls bonds having a face value of $$541,500.$ The call price is $103.$ Record the redemption of the bonds. $($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date Account Titles and Explanation

Debit

Credit

Jan. $1$

$($c$)$

Prepare the 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. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date Account Titles and Explanation

Debit

Credit

Dec. $31$

Answer & Explanation Solved by verified expert

See Answer