Problem 14-6 Your answer is partially correct. Try again. Presented below are selected transactions on the books of Sandhill Co May 1, 2017 Bonds payable with a par value of $847,200, which are dated January 1, 2017, are sold at 107 plus accrued interest. They are coupon bonds, bear interest rporation at 12% (payable annually at January 1), and mature January 1, 2027, (Use interest expense account for accrued interest.) Adjusting entries are made to record the accrued interest on the bonds, and the amortization of the proper amount of premium. (Use straight-line amortization.) Dec. 31 Jan. 1, 2018 Interest on the bonds is paid April 1 Dec. 31 Bonds with par value of $338,880 are called at 103 plus accrued interest, and redeemed. (Bond premium is to be amortized only at the end of each year.) Adjusting entries are made to record the accrued interest on the bonds, and the proper amount of premium amortized Prepare journal entries for the transactions above. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answers to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account tities and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Date Account Titles and Explanation Debit Credit May 1, 2017 Cash 847,200 Bonds Payable Premium on Bonds Payable Interest Expense 33888 Dec. 31, 2017 | | Interest Expense Interest Payable To record the interest) Premium on Bonds Pavable Premium on Bonds Payable Interest Expense (To amortize the premium) Jan. 1, 2018 | |Interest Payable Cash Apr. 1, 2018 Bonds Payable Premium on Bonds Payable Interest Expense Cash Gain on Redemption of Bonds Dec. 31, 2018 |Interest Expense Interest Payable (To record the interest) Premium on Bonds Payable Interest Expense (To amortize the premium)