FIX THE RED BOXES IN PART (d)

Metlock, Inc. sold $2,800,000,6%,10year bonds on January 1, 2022. The bonds were dated January 1 and pay interest annually on January 1. Metlock, Inc. uses the straight-line method to amortize bond premium or discount. The bonds were sold at 101. (a) V Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2022 I Premium on Bonds Payable I I 28000 I Bonds Payable I I 2800000 (b) Your answer is correct. Prepare a bond premium amortization schedule for the first four interest periods. Annual Interest Interest Expense Periods Interest to Be Paid to Be Recorded Premium Amortization Unamortize Issue date $ to 168,000 $ 165,200 2,800 2 168,000 165,200 2,800 3 168,000 165,200 2,800 4 168,000 165,200 2,800\fPrepare the journal entries for interest and the amortization of the premium in 2022 and 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) )ate 31,2022 Account Titles and Explanation Debit Credit Interest Expense 165200 Premium on Bonds Payable 2800 Interest Payable 168000 2023 V 31,2023 Interest Payable 168000 Cash Interest Expense Premium on Bonds Payable Interest Payable 165200 2800 168000 168000 Your answer is partially correct. Show the balance sheet presentation of the bond liability at December 31, 2023. (Enter account name only and do not provide descriptive information.) Metlock, Inc. Balance Sheet December 31, 2023 V st Payable $ 168000 t Liabilities V arm Liabilities V : Payable $ 2800000 j 2 Premium on Bonds Payable 28000 $ 2828000