Question: Exercise 10-12 The following section is taken from Cheyenne Corp.'s balance sheet at December 31, 2019. $ 120,050 Current liabilities Interest payable Long-term liabilities Bonds

Exercise 10-12 The following section is taken from Cheyenne Corp.'s balance

Exercise 10-12 The following section is taken from Cheyenne Corp.'s balance sheet at December 31, 2019. $ 120,050 Current liabilities Interest payable Long-term liabilities Bonds payable, 7%, due January 1, 2022 1,715,000 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. Do not indent man Date Account Titles and Explanation Debit Credit Jan. 1 (b) Assume that on January 1, 2020, after paying interest, Cheyenne calls bonds having a face value of $681,000. The call price is 103. Record the redemption of the bonds. manually.) Date Account Titles and Explanation Debit Credit Jan. 1 (c) 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 ind Date Account Titles and Explanation Debit Credit Dec. 31

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