A $530,000 bond issue on which there is an unamortized discount of $42,000 is redeemed for $466,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank. Bonds Payable Discount on Bonds Payable Gain on Redemption of Bonds Cash 530,000 42,000 On January 1, Luther Co. issued a $1,000,000, five-year, 8% installment note payable with payments of $250,456 principal plus interest due on January 1 of each year for the next five years. 1. Prepare the adjusting journal entry at December 31 to accrue interest for the year. Interest Expense Interest Payable 80,000 80,000 2. Show the account(s) and amount(s) where accrued interest will appear on a multi-step income statement prepared on December 31. Interest Expense $ reported as Other expense. 3. Show the account(s) and amount(s) and where they will appear on a classified balance sheet prepared on December 31. Partial Balance Sheet Current Liabilities: Long-Term Liabilities