Presented below are selected transactions on the books of Sheffield Corporation.

May 1, 2017		Bonds payable with a par value of $895,200, which are dated January 1, 2017, are sold at 106 plus accrued interest. They are coupon bonds, bear interest at 13% (payable annually at January 1), and mature January 1, 2027. (Use interest expense account for accrued interest.)
Dec. 31		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, 2018		Interest on the bonds is paid.
April 1		Bonds with par value of $358,080 are called at 102 plus accrued interest, and redeemed. (Bond premium is to be amortized only at the end of each year.)
Dec. 31		Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized.