For b) on this problem, what label goes in the grey checkered box? I tried "premium on bonds payable" and it was wrong, and now was going to try this option that is typed in there now but don't know if thats right either. thanks for your help!

Exercise 10-12 Your answer is partially correct. Try again. The following section is taken from Ohlman Corp.'s balance sheet at December 31, 2018. Current liabilities Interest payable $ 112,000 Longterm liabilities Bonds payable, 7%, due January 1, 2021 1,600,000 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, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Tides and Explanation Debit Credit J Jan. 1 Interest Payable 112000 J J 0!) Assume that on January 1, 2019, after paying interest, Ohlman calls bonds having a face value of $600,000. 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.) I' I' I' 0') Assume that on January 1, 2019, after paying interest, Ohlman calls bonds having a face value of $600,000. 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 J J Jan. 1 Bonds Payable 600000 E. ............................................................................... J J (C) Prepare the entry to record the accrual of interest on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Ties and Explanation Debit Credit Dec. 31 Interest Expense 0000 Interest Payable H=- 70000 Click if you would like to Show Work for this question: Open Show Work