14-5 In the following two independent cases, the company closes its books on December 31: Armstrong Inc. sells $2 million of 10% bonds on March 1, 2017. The bonds pay interest on September 1 and March 1. The bonds' due date is September 1, 2020. The bonds yield 12%. Quelette Ltd. sells $6 million of 11% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The bonds' due date is June 1, 2021. The bonds yield 10%. On October 1, 2018, Quelette buys back $1.2 million worth of bonds for $1.4 million, including accrued interest