The following information is taken from Sheridan Corp.'s balance sheet at December 31, 2021.

Current liabilitiesInterest payable$97,600Long-term liabilitiesBonds payable (4%, due January 1, 2032)$2,440,000Less: Discount on bonds payable24,4002,415,600

Interest is payable annually on January 1. The bonds are callable on any annual interest date. Sheridan uses straight-line amortization for any bond premium or discount. From December 31, 2021, the bonds will be outstanding for an additional10years (120 months).

(a)Journalize the payment of bond interest on January 1, 2022.(b)Prepare the entry to amortize bond discount and to accrue the interest on December 31, 2022.(c)Assume on January 1, 2023, after paying interest, that Sheridan Corp. calls bonds having a face value of $488,000. The call price is102. Record the redemption of the bonds.(d)Prepare the adjusting entry at December 31, 2023, 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 2022

enter an account title to record the payment of bond interest on January 1, 2017

enter a debit amount

enter a credit amount

enter an account title to record the payment of bond interest on January 1, 2017

enter a debit amount

enter a credit amount

(b)

Dec. 31 2022

enter an account title for the journal entry to amortize bond discount and to accrue the interest on December 31, 2017

enter a debit amount

enter a credit amount

enter an account title for the journal entry to amortize bond discount and to accrue the interest on December 31, 2017

enter a debit amount

enter a credit amount

enter an account title for the journal entry to amortize bond discount and to accrue the interest on December 31, 2017

enter a debit amount

enter a credit amount

(c)

Jan. 1 2023

enter an account title to record the redemption of the bonds on January 1, 2018

enter a debit amount

enter a credit amount

enter an account title to record the redemption of the bonds on January 1, 2018

enter a debit amount

enter a credit amount

enter an account title to record the redemption of the bonds on January 1 , 2018

enter a debit amount

enter a credit amount

enter an account title to record the redemption of the bonds on January 1 , 2018

enter a debit amount

enter a credit amount

(d)

Dec. 31 2023

enter an account title for the adjusting entry on December 31, 2018

enter a debit amount

enter a credit amount

enter an account title for the adjusting entry on December 31, 2018

enter a debit amount

enter a credit amount

enter an account title for the adjusting entry on December 31, 2018

enter a debit amount

enter a credit amount