The following section is taken from Oriole Ltd$.$s balance sheet at December $31,2019.$

Non$-$current liabilities

Bonds payable, $7\%,$ due January $1,2024$

HK$ $1,585,000$

Current liabilities

Interest payable

$110,950$

Bond interest is payable annually on January $1.$ The bonds are callable on any interest date.

Journalize the payment of the bond interest on January $1,2020.($Credit account titles are automatically indented when amount is

entered. Do not indent manually.$)$

Date Account Titles and Explanation

Jan. $1$

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List of Accounts

Assume that on January $1,2020,$ after paying interest, Oriole calls bonds having a face value of $$503,000.$ The call price is $103.$

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. $1$

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List of Accounts

Prepare the entry to record the accrual of interest on December $31,2020.($Credit account titles are automatically indented when

amount is entered. Do not indent manually.$)$

Date Account Titles and Explanation

Debit

Credit

Dec. $31$

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