The following section is taken from Majestic's balance sheet at December 31, 2006.

Current liabilities:
Bond interest payable $ 24,000
Long-term liabilities:
Bonds payable, 8%, due January 1, 2013 300,000


Interest is payable annually on January 1. The bonds are callable on any annual interest date.

Journalize the payment of the bond interest on January 1, 2007.

Date Account / Description
Jan. 1
Debit Credit
Cash $ 24,000
Bond interest payable $ 24,000


Assume that on January 1, 2007, after paying interest, Majestic calls bonds having a face value of $50,000. The call price is 104. Record the redemption of the bonds.

Date Account / Description Debit Credit
Jan. 1 Bonds payable $ ______________
Loss on bond redemption $ __________
Cash $_______


Prepare the adjusting entry on December 31, 2007, to accrue the interest on the remaining bonds.

Date Account / Description Debit Credit
Dec. 31 Bond interest expense $ ______
Bond Interest Payable ________


**Everything underlined I am having trouble getting the answers, Thanks so much!!