The following section is taken from Swifty's balance sheet at December 31, 2021. Current liabilities Interest payable $ 45,900 Long-term liabilities Bonds payable (9%, due January 1, 2025) 510,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. (a) Journalize the payment of the bond interest on January 1, 2022. (b) Assume that on January 1, 2022, after paying interest, Swifty calls bonds having a face value of $105,000. The call price is 105. Record the redemption of the bonds. (c) Prepare the adjusting entry on December 31, 2022, to accrue the interest on the remaining bonds.

The following section is taken from Swifty's balance sheet at December 31, 2021. Current liabilities Interest payable $ 45,900 Long-term liabilities Bonds payable (9%, due January 1, 2025) 510,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. (a) Journalize the payment of the bond interest on January 1, 2022. (b) Assume that on January 1, 2022, after paying interest, Swifty calls bonds having a face value of $105,000. The call price is 105. Record the redemption of the bonds. (c) Prepare the adjusting entry on December 31, 2022, to accrue the interest on the remaining bonds. (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 for the amounts.) No. Date Account Titles and Explanation Debit Credit (a) Jan. 1 Interest Expense Cash (b) Jan. 1 Bonds Payable Premium on Bonds Payable Cash JUNE (c) Dec. 31 Interest Expense