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Monkey Company sells $400,000 of 12% bonds on June 1, 2019. The bonds pay interest on December 1 and June 1. The due date of

Monkey Company sells $400,000 of 12% bonds on June 1, 2019. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2023. The bonds yield 10%. On October 1, 2020, Monkey Company buys back $120,000 worth of bonds for $126,000 (hint: dont forget how the carrying value of the bond changes from 6/1 to 10/1 in determining a potential gain/loss). The company uses the effective interest method of amortizing applicable premiums and discounts.

Required:

  1. Prepare the journal entries that would be required on each of the following dates.
    1. June 1, 2019
    2. December 1, 2019
    3. December 31, 2019
    4. June 1, 2020
    5. October 1, 2020
    6. December 1, 2020\

Can you also provide an amortization schedule for this?

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