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

Non-current liabilities
Bonds payable, 6%, due January 1, 2024	HK$ 1,575,000
Current liabilities
Interest payable	94,500

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

1/Journalize the payment of the bond interest on January 1, 2020.

2/Assume that on January 1, 2020, after paying interest, Sunland calls bonds having a face value of $590,500. The call price is 103. Record the redemption of the bonds.

3/Prepare the entry to record the accrual of interest on December 31, 2020.