Shonrock Co. sold $100,000, 9%, 10-year bonds on January 1, 2020. The bonds were dated January 1, and interest is paid on Jan 1 of next year. The bonds were sold at 105. The effective interest rate is 8.247%

1. Prepare the journal entry to record the issuance of the bonds on January 1, 2020.

2. Prepare the journal entry to record accrued bond interest on December 31, 2020.

3. Assume that on Jan 1, 2021, before the interest payment, Shonrock calls the bonds at 102. Record the redemption of the bonds.