Journalize the payment of the bond interest on january

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Question

The following section is taken from Carla Vista's balance sheet at December 31, 2020.

Current liabilities

Interest payable$34,500

Long-term liabilities

Bonds payable (6%, due January 1, 2024) 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, 2021

B. Assume that on January 1, 2021, after paying interest, Mareska calls bonds having a face value of $230,000. The call price is 102. Record the redemption of the bonds.

C. Prepare the adjusting entry on December 31, 2021, to accrue the interest on the remaining bonds.

Reference no: EM132316944

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