The following information is taken from Sheffield Corp's balance sheet at December 31, 2016. $ 94,000 Current liabilities Interest payable Long-term liabilities Bonds payable (4%, due January 1, 2027) Less: Discount on bonds payable $4,560,000 45,600 4,514,400 Interest is payable annually on January 1. The bonds are callable on any annual interest date. Sheffield 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) (b) (c) Journalize the payment of bond interest on January 1, 2017. Prepare the entry to amortize bond discount and to accrue the interest on December 31, 2017. Assume on January 1, 2018, after paying interest, that Sheffield Corp. calls bonds having a face value of $760,000. The call price is 102. Record the redemption of the bonds. Prepare the adjusting entry at December 31, 2018, to amortize bond discount and to accrue interest on the remaining bonds. (d) No. Debit Credit Date Account Titles and Explanation Jan. 1 Interest Payable 2017 (a) 94000 Cash 94000 (b) Dec. 31 2017 Interest Expense 186960 Interest Payable 182400 Discount on Bonds Payable 4560 (c) Jan. 1 2018 Bonds Payable 760000 Cash 775200 Discount on Bonds Payable Loss on Bond Redemption (d) Dec. 31 2018 Interest Expense Interest Payable Discount on Bonds Payable