Accounting for Bond Interest Payments, Premium Amortization, and Redemption The following is taken from the TED Inc. balance sheet. TED Inc. Balance Sheet (partial) December 31, 2017 Non-current liabilities Bonds payable (face value $4,000,000), 7% due January 1, 2028 Current liabilities Interest payable (for 12 months from January 1 to December 31) $4.240,000 280,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. TED uses straight-line amortization for any bond premium or discount. From December 31, 2018, the bonds will be outstanding for an additional 10 years (120 months). mancing: LongTerm Liabilities Required: 1. Journalize the payment of bond interest on January 1, 2018. 2. Prepare the entry to amortize bond premium and accrue the interest due on December 31, 2018. 3. Assume that on January 1, 2019, after paying interest, TED calls bonds having a face value of $1,200,000. The call price is 101. Record the redemption of the bonds. 4. Prepare the adjusting entry on December 31, 2019 to amortize bond premium and to accrue interest on the remaining bonds