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

Current liabilities

Interest payable

$$99,200$

Long$-$term liabilities

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

$$2,480,000$

Less: Discount on bonds payable

$24,800,2,455,200$

Interest is payable annually on January $1.$ The bonds are callable on any annual interest date. Wildhorse 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 $1,202,$ after paying interest, that Wildhorse Corp. calls bonds having a face value of $$496,000.$ 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.$)$

No$.$

Date

Account Titles and Explanation

Debit

Credi