B D F H 1 j E 1 Lochrie Corp. issued $700,000,5%, 10-year bonds at face value on 10/1/20. The bonds were dated October 1, 2020, 2 and pay interest annually on October 1. Financial statements are prepared annually on December 31. 3 6 4 a. Prepare the journal entry to record the issuance of the bonds. 5 b. Prepare the adjusting entry to record the accrual of interest on 12/31/20. c. Show the balance sheet presentation of bonds payable and bond interest payable on 12/31/20. 7 d. Prepare the journal entry to record the payment of interest on 10/1/21. 8 e. Prepare the adjusting entry to record the accrual of interest on 12/31/21. 9 f. Assume that on1/1/22, Lochrie pays the accrued bond interest and calls the bonds. The call price is 104. Record the payment of interest and redemption of the bonds. 10 11 12