(c) why Bonds Payable is 1,272,000 ?

(d) why interest expense is 114,000 and Bonds payable is 12,000 ?

Bonds payable 11.9 (LO 2,6) The following is taken from the Colaw SA statement of financial position Rs3.437,000 Prepare entries to record interest payments, straight-line premium Colaw SA amortization, and redemption of Statement of Financial Position (partial) bonds. December 31, 2020 dad Non-current liabilities am b Bonds payable (face value 3.000.000) com o nom b or OSOS 7% due January 1, 2031 3,200.000 Current liabilities w DA C.11 O Interest payable (for 12 months from o t her January 1 to December 31) wolowo210,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. Colaw uses straight-line amortization for any bond premium or discount. From December 31, 2020, the bonds will be outstanding for an additional 10 years (120 months). (O .SI Instructions Tampon--combo a. Journalize the payment of bond interest on January 1, 2021. b. Prepare the entry to amortize bond premium and to accrue the interest due on December 31, 2021. Assume that on January 1, 2022, after paying interest, Colaw calls bonds having a face value of 1,200,000. The call price is 101. Record the redemption of the bonds. d. Prepare the adjusting entry at December 31, 2022, to amortize bond premium and to accrue interest on the remaining bonds. A b. Amortization 20,000 C. Gain 60,000 d. Amortization 12,000 *PROBLEM 11.9 (a) 2021 Jan. 1 Interest Payable. Cash 210,000 210,000 (b) Dec. 31 Interest Expense. Bonds Payable (200,000 + 10)....... Interest Payable... 190,000 20,000 210,000 ((c) 2022 Jan 1 1,272,000* Bonds Payable........ 2 *(3,180,000 X.40 = 1,272,000 Gain on Bond Redemption (1,272,000 - 1,212,000).. Cash (1,200,000 X 101%) ..... call bond's call price face value 60,000 1,212,000 Dec. 31 114,000? 12,000** 2 Interest Expense...... Bonds Payable Interest Payable (1,800,000 X 7%)... 126,000 - 20,000 - 72,000 = 108,000;108,000/ 9 = 12,000 (or 20.000 X 60