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

Windsor Co. sells $511,000 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.

Prepare all of the relevant journal entries from the time of sale until December 31, 2021. (Assume that no reversing entries were made.)

Sheridan Co. sells $365,000 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 10%. On October 1, 2021, Sheridan buys back $120,450 worth of bonds for $127,450 (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.

Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield
Date		Cash Paid		Interest Expense		Premium Amortized		Carrying Amount of Bonds
6/1/20		$		$		$		$
12/1/20
6/1/21
12/1/21
6/1/22
12/1/22
6/1/23
12/1/23
6/1/24

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

Date	Account Titles and Explanation	Debit	Credit
6/1/20
12/1/20
12/31/20
6/1/21
10/1/21
	(To record interest expense and premium amortization)
10/1/21
	(To record buy back of bonds)
12/1/21
12/31/21
6/1/22
12/1/22