R&R has the following information: Number of 2,500 Par value p$ 1,200 Bonds are 1/1/X1 Bonds are i 1/1/X1 Years to ma 5 Stated inter 6% Effective Ini 8% Interest is July 1 Interest is Jan. 1 5. What is the journal entry required at the balance sheet date for interest accrued and the amortization of the bond discount or premium at December 31, 20X1? A. Debit Bond Interest Expense for $68,923, Debit Premium on Bonds Payable for $21,077, and Credit Bond Interest Expense Payable for $90,000 B. Debit Bond Interest Expense for $111,077, Credit Discount on Bonds Payable for $21,077, and Credit Bond Interest Expense Payable for $90,000 C. Debit Bond Interest Expense for $68,923, Debit Premium on Bonds Payable for $21,077, and Credit Cash for $90,000 D. Debit Bond Interest Expense for $111,077, Credit Discount on Bonds Payable for $21,077, and Credit Cash for $90,000 6. Assume the additional following information about R&R exercising a call option on these bonds (see Question #2). What would be the resulting gain on early extinguishment of debt, loss on early extinguishment of debt, or neither a gain or loss? Enter the value as a positive for a gain, negative for a loss, or zero for neither a gain or loss. Do not use any symbols. Call Option % 105% Date Called: 1/1/X2 Unamortized Discount $ 201,995