The following information is taken from Sarasota Corp.'s balance sheet at December 31, 201 Current liabilities Interest payable Long-term liabilities 93,000 Bonds payable (5%, due January 1, 2027) $4,320,000 Less: Discount on bonds payable 43,200 4,276,800 Interest is payable annually on January 1. The bonds are callable on any annual interest date. Sarasota 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 Sarasota Corp. calls bonds having a face value of $720,000. 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 (a) Jan. 1 2017 Interest Payable Debit Credit 93000 Cash 93000 (b) Dec. 31 2017 Interest Expense Interest Payable Discount on Bonds Payable 4320 (c) Jan. 1 2018 Bonds Payable 720000 Loss on Bond Redemption Cash 734400