The following information is taken from Bridgeport Corp.s balance sheet at December 31, 2016.

Current liabilities
Interest payable				$ 87,500
Long-term liabilities
Bonds payable (5%, due January 1, 2027)		$3,000,000
Less: Discount on bonds payable		30,000		2,970,000

Interest is payable annually on January 1. The bonds are callable on any annual interest date. Bridgeport 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).

(a)		Journalize the payment of bond interest on January 1, 2017.
(b)		Prepare the entry to amortize bond discount and to accrue the interest on December 31, 2017.
(c)		Assume on January 1, 2018, after paying interest, that Bridgeport Corp. calls bonds having a face value of $500,000. The call price is 102. Record the redemption of the bonds.
(d)		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.)

No.	Date	Account Titles and Explanation	Debit	Credit
(a)	Jan. 1 2017
(b)	Dec. 31 2017
(c)	Jan. 1 2018
(d)	Dec. 31 2018