Problem 10-7A Your answer is partially correct. Try again. The following information is taken from Ayayai Corp.'s balance sheet at December 31, 2016. de Current labilities Interest payable 97,000 Lang-tem labiltes Bonds payable (4%, due Jansary 1, 2027) $5,280,000 Less: Discount on bends payable 52,800 ,227,200 Interest is payable annually on January 1. The bonds are callable on any annual interest date. Ayayai uses straight-line amortization for any bond premium or discount. From December 31, 2016, the bonds will be outstanding for an additional 10 years (120 months) ()Journalize the payment of bond interest on January 1, 2017. ()Prepare the entry to amortize bond discount and to accrue the interest on December 31, 2017. (e)Assume on January 1, 2018, after paying interest, that Ayayai Corp. calls bonds having a face value of $880,000. The call price is 102. Record the redemption of the bonds. (4)Prepare the adjusting entry at December 31, 2018, to amortize bond discount and to accrue interest on the remaining bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Aecot Ts snd Explti Ne D (a) Jan 1 2017 Interest Payatle 97,000 97.000 Cash (b) Dec. 31 201 Interest Expense 211,200 Interest Payable Discount on Bonds Payable ( Jan 1 2018 Bonds Payable B80.000 Lass on Bond Redemptian Discount on Bords Payabler Cash (d) Dec. 31 20L8 Interest xpense Interest Payable Discount on bonds Payable Open Show Wo cck if you would like to Show Work for this question sow uST OF ACCOUNES LNE TO TERT LINE TO TEXT Questions Unlimited