Prepare all of the relevant journal entries

Reference no: EM131962164

PROBLEM

Bonita Co. sells $376,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2021. The bonds yield 8%. On October 1, 2018, Bonita buys back $116,560 worth of bonds for $120,560 (includes accrued interest).

Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end.

Prepare all of the relevant journal entries from the time of sale until the date indicated. Give entries through December 1, 2019.

Reference no: EM131962164

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