Azura Co. sells $75,000 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, 2025. The bonds yield 10%, selling for $79,847.5. On October 1, 2021, Sanford buys back $37,5000 worth of bonds for $78,750 (includes accrued interest). Give entries through October 1, 2021.

Prepare all of the relevant journal entries from the time of sale until the date indicated. Amortize premium or discount on interest dates and at year-end.