Headland Co. sells $433,000 of 12% bonds on June 1, 2025. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2029. The bonds yield 8%. On October 1, 2026, Headland buys back $129,900 worth of bonds for $135,900 (includes accrued interest). Give entries through December 1, 2027.

Prepare all of the relevant journal entries from the time of sale until December 31, 2027. (Assume that no reversing entries were made.)