P10-3B The following section is taken from Lois Corp.'s balance sheet at December 31, Prepare journal entries to 2011. record interest payments and Current liabilities redemption of bonds. Interest payable $ 84,000 (80 5, 6), AP Long-term liabilities Bonds payable (7%, due January 1, 2016) 1,200,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. Instructions (a) Journalize the payment of the bond interest on January 1, 2012. (b) Assume that on January 1, 2012, after paying interest, Lois Corp. calls bonds having m) Los $12.000 a face value of $300,000. The call price is 104. Record the redemption of the bonds. (e) Prepare the adjusting entry on December 31, 2012, to accrue the interest on the re- maining bonds