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.

$($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If

no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date

Account Titles and Explanation

Interest Payable

Cash

Discount on Bonds Payable

$.1,2026$

Bonds Payable

Discount on Bonds Payable

Loss on Bond Redemption

Cash

Interest Expense

Interest Payable

Debit

Credit

$1,2025vv$

Interest Payable

Discount on Bonds Payable

$[$

Bonds Payable

Discount on Bonds Payable

Loss on Bond Redemption

Interest Expense

Interest Payable

Discount on Bonds Payable