Metlock Co. sells $431,000 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 8%. On October 1, 2018, Metlock buys back $137,920 worth of bonds for $144,920 (includes accrued interest).

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.

Date . Cash Paid . Interest Expense Discount Amortized . Carrying Amount of Bonds 3/1/17 $ $ $ $

9/1/17

3/1/18

9/1/18

3/1/19

9/1/19

3/1/20

9/1/20

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.)

6/1/17

12/1/17/

12/31/17

6/1/18

10/1/18

(to record interest expense and premium amortization)

10/1/18

(to record buy back of bonds)

12/1/18

12/31/18

6/1/19

12/1/19