FILL IN DEBIT AND CREDIT

The following section is taken from Metlock's balance sheet at December 31, 2021. $ 49,050 Current liabilities Interest payable Long-term liabilities Bonds payable (9%, due January 1, 2025) 545,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. (a) (b) Journalize the payment of the bond interest on January 1, 2022. Assume that on January 1, 2022, after paying interest, Metlock calls bonds having a face value of $140,000. The call price is 109. Record the redemption of the bonds. Prepare the adjusting entry on December 31, 2022, to accrue the interest on the remaining bonds. (c) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (a) Jan. 1 Interest Payable Cash (b) Jan. 1 Bonds Payable Loss on Bond Redemption Cash (c) Dec. 31 Interest Expense Interest Payable