Make the journal entry to record the payment of interest

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On October 1, 2021, Pina Corp. issued $852,000, 5%, 10-year bonds at face value. The bonds were dated October 1, 2021, and pay interest annually on October 1. Financial statements are prepared annually on December 31.

Problem 1. Show the balance sheet presentation of bonds payable and bond interest payable on December 31, 2021.

Problem 2. Make the journal entry to record the payment of interest on October 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Problem 3. Make the journal entry to record the payment of interest on October 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Problem 4. Assume that on January 1, 2023, Pina 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 manually.)

A. (To record payment of interest)
B. (To record the redemption of the bonds)

Reference no: EM132856536

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