The following section is taken from Tamarisk's balance sheet at December 31, 2021.
Current liabilities
Interest payable
$46,000
Long-term liabilities
Bonds payable (8%, due January 1, 2025)
575,000
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, Tamarisk calls bonds having a face value of $170,000. The call price
is 106. 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. If no entry is required, select \"No Entry\" for
the account titles and enter 0 for the amounts.)
No. Date Account Titles and Explanation
Debit
Credit
(a)
Jan. 1
(b)
Jan. 1
(c)
Dec. 31