Presented below are selected transactions on the books of Sage Corporation

May 1, 2025 Bonds payable with a par value of $825,600, which are dated January 1, 2025, are sold at 106 plus accrued interest. They are coupon bonds, bear interest at 11% (payable annually at January 1), and mature January 1, 20235. (Use the Interest Expense account for accrued interest.)

Dec. 31, 2025 Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium. (Use straight-line amortization.)

Jan. 1, 2026 Interest on the bonds is paid.

April 1, 2026 Bonds with par value of $330,240.00 are called at 102 plus accrued interest, and redeemed. (Bond premium is to be amortized only at the end of each year.)

Dec 31, 2026 Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized.