In each of the following independent cases, the company closes its books on December 31.

Sheffield Co. sells $467,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021. 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.

Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Cash Paid Interest Expense Discount Amortized Carrying Amount of Bonds Date 3/1/20 $ 9/1/20 3/1/21 9/1/21 3/1/22 9/1/22 3/1/23 9/1/23 Debit Credit Date Account Titles and Explanation 3/1/20 Cash Discount on Bonds Payable Bonds Payable 9/1/20 Interest Expense Discount on Bonds Payable Cash 12/31/20 Interest Expense Discount on Bonds Payable Interest Payable 3/1/21 Interest Expense Interest Payable Discount on Bonds Payable Cash 9/1/21 Interest Expense Discount on Bonds Payable Cash 12/31/21 Interest Expense Discount on Bonds Payable Cash