a. Candy Co. sells $429,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 8%. On October 1, 2021, Marigold buys back $128,700 worth of bonds for $134,700 (includes accrued interest). Give entries through December 1, 2022. 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.

b. Prepare all of the relevant journal entries from the time of sale until December 31, 2022. (Assume that no reversing entries were made.) Should be 10 total