Show Attempt History Current Attempt in Progress On October 1, 2021, Riverbed Corp. issued $876,000, 6%, 10-year bonds at face value. The bonds were dated October 1, 2021, and pay interest annually on October 1. Financial statements are prepared annually on December 31. Show the balance sheet presentation of bonds payable and bond interest payable on December 31, 2021. RIVERBED CORP. Balance Sheet (Partial) December 31, 2021 Long-term Investments Interest Payable $ 876000 Current Liabilities Interest Payable 52560 Prepare the adjusting entry to record the accrual of interest on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2022 Interest Expense 13140 Interest Payable 13140 Assume that on January 1, 2023, Riverbed pays the accrued bond interest and calls the bonds. The call price is 102. Record the payment of interest and redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1. 2023 Interest Payable 876000 Cash 39420 (To record payment of interest) Jan. 1. 2023 Bonds Payable 876000 Loss on Bond Redemption 13140 Cash 228650 (To record the redemption of the bonds)