BAGE NEXT CALA REINIR W Exercise 10-12 The following section is taken from Monty Corp.'s balance sheet at December 31, 2019. Current abilities Interest payable $ 124,600 Long-term babilities Bonds payable, 7%, due January 1, 2022 1,780,000 Bond interest is payable annually on January 1. The bonds are callable on any interest date. (a) Journalize the payment of the bond interest on January 1, 2020. (Credit account titles are automatically indented when amount is entered a mot indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Interest Payable 124,500 Cash 124,600 (b) Assume that on January 1, 2020, after paying interest, Monty calls bonds having a face value of $505,500. The cal 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 Debat Credit Jan. 1 Bonds Payable Loss on Bond Redemption Cash CALEA PRINTER VERSION BACK Date Account Titles and Explanation Debit Credit Jan. 1 Interest Payable 124,600 Cash 124,600 (b) Assume that on January 1, 2020, after paying interest, Monty calls bonds having a face value of $585,500. 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 Debut Credit Jan. 1 Bonds Payable Loss on Bond Redemption Cash 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