Problem 10-3A Your answer is partially correct. Try again. The following section is taken from Hardesty's balance sheet at December 31, 2016. $ 43,500 Current liabilities Interest payable Long-term liabilities Bonds payable (8%, due January 1, 2020) 535,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. (a) (b) (c) Journalize the payment of the bond interest on January 1, 2017. Assume that on January 1, 2017, after paying interest, Hardesty calls bonds having a face value of $130,000. The call price is 109. Record the redemption of the bonds. Prepare the adjusting entry on December 31, 2017, to accrue the interest on the remaining bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit (a) Jan. 1 interest Payable 49000 x Cash 49000 (b) Jan. 1 Bonds Payable 185000 Loss on Bond Redemption Cash (c) Dec. 31 interest Expense 32400 inter 32400 Click if you would like to Show Work for this question: Open Show Work