The following information is taken from Pharoah Corp.$\text{'}$s balance sheet at December $31,2024.$

Current liabilities

Interest payable

$$97,200$

Long$-$term liabilities

Bonds payable $(4\%,$ due January $1,2035)$ $$2,430,000$

Less: Discount on bonds payable $,24,300,2,405,700$

Interest is payable annually on January $1.$ The bonds are callable on any annual interest date. Pharoah uses

straight$-$line amortization for any bond premium or discount. From December $31,2024,$ the bonds will be

outstanding for an additional $10$ years $(120$ months$).$

$($a$)$ Journalize the payment of bond interest on January $1,2025.$

$($b$)$ Prepare the entry to amortize bond discount and to accrue the interest on December $31,2025.$

$($c$)$ Assume on January $1,2026,$ after paying interest, that Pharoah Corp. calls bonds having a face value of

$$486,000.$ The call price is $102.$ Record the redemption of the bonds.

$($d$)$ Prepare the adjusting entry at December $31,2026,$ to amortize bond discount and to accrue interest on

the remaining bonds.