The following section is taken from Pharoah's balance sheet at December 31, 2021. Current liabilities...
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The following section is taken from Pharoah's balance sheet at December 31, 2021. Current liabilities Interest payable $ 48,500 Long-term liabilities Bonds payable (9%, due January 1, 2025) 585,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. (a) Journalize the payment of the bond interest on January 1, 2022. (b) Assume that on January 1, 2022, after paying interest, Pharoah calls bonds having a face value of $180,000. The call price is 105. Record the redemption of the bonds. (c) Prepare the adjusting entry on December 31, 2022, to accrue the interest on the remaining bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (a) Jan. 1 (b) Jan. 1 (c) Dec. 31
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