Metlock Co. sells $390,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2021. The bonds yield 10%. On October 1, 2018, Metlock buys back $120,900 worth of bonds for $124,900 (includes accrued interest).

Prepare all of the relevant journal entries from the time of sale until the date indicated. Give entries through December 1, 2019. (Assume that no reversing entries were made.)

10/1/18 Interest Expense 13660 Premium on Bonds Payable 1940 | Cash 15600 (To record interest expense and premium amortization) 10/1/18 TBonds Payable 120,900 Premium on Bonds Payable 19600 Gain on Redemption of Bonds Gain on Redemption of Bonds T U 15600 124,900 Cash 124,900 (To record buy back of bonds) 12/1/18 TInterest Expense Ex Premium on Bonds Payable of cash Cash 12/31/18 TInterest Expense Premium on Bonds Payable DDDDDDDDDD Interest Payable 6/1/19 Tinterest Payable 6/1/19 Interest Payable 20344 Interest Expense 3056 Premium on Bonds Payable Cash 23400 12/1/19 Interest Expense 20191 Premium on Bonds Payable 3209 Cash 23400 Click if you would like to Show Work for this question: Open Show Work