The following is taken from the Cullumber Company balance sheet.

Cullumber Company Balance Sheet (partial) December 31, 2020
Current Liabilities
Interest payable (for 12 months from January 1 to December 31)					$257,600
Long-term Liabilities
Bonds payable, 8% due January 1, 2028			$3,220,000
Add: Premium on bonds payable			217,000		$3,437,000

Interest is payable annually on January 1. The bonds are callable on any annual interest date. Cullumber uses straight-line amortization for any bond premium or discount. From December 31, 2020, the bonds will be outstanding for an additional 10 years (120 months).

Journalize the payment of bond interest on January 1, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2021

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Prepare the entry to amortize bond premium and to accrue the interest due on December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2021

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Assume that on January 1, 2022, after paying interest, Cullumber Company calls bonds having a face value of $1,288,000. The call price is 105. Record the redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2022

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Prepare the adjusting entry at December 31, 2022, to amortize bond premium and to accrue interest on the remaining bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2022

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