The following section is taken from Ohlman Corp.'s balance sheet at December 31, 2021. Bond interest is

Question:

The following section is taken from Ohlman Corp.'s balance sheet at December 31, 2021. Current liabilities Interest payable Long-term liabilities Bonds payable, 7%, due January 1, 2026 $ 112,000

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

Instructions

a. Journalize the payment of the bond interest on January 1, 2022.
b. Assume that on January 1, 2022, after paying interest, Ohlman calls bonds having a face value of $600,000. The call price is 103. Record the redemption of the bonds.
c. Prepare the entry to record the accrual of interest on December 31, 2022.