On January $1,2020,$ Ayayai Limited purchased a $10\%$ bond with a maturity value of $$350,000.$ The bonds provide the bondholders with a $9\%$ yield. They are dated January $1,2020,$ and mature on January $1,2025,$ with interest receivable on June $30$ and December $31$ of each year. Ayayai accounts for the bonds using the amortized cost approach, applies ASPE using the effective interest method, and has a December $31$ year end.

Date Cash Interest Premium$/$Discount Carrying Value Jan $01,2020$ $$363,847\mathrm{.}26$

Jun $30,2020$ $$17,500\mathrm{.}00$ $$16,373\mathrm{.}13$ $$1,126\mathrm{.}87$ $$362,720\mathrm{.}38$ Dec $31,2020$ $$17,500\mathrm{.}00$ $$16,322\mathrm{.}42$ $$1,177\mathrm{.}58$ $$361,542\mathrm{.}80$

Jun $30,2021$ $$17,500\mathrm{.}00$ $$16,269\mathrm{.}43$ $$1,230\mathrm{.}57$ $$360,312\mathrm{.}23$

Dec $31,2021$ $$17,500\mathrm{.}00$ $$16,214\mathrm{.}05$ $$1,285\mathrm{.}95$ $$359,026\mathrm{.}28$

Jun $30,2022$ $$17,500\mathrm{.}00$ $$16,156\mathrm{.}18$ $$1,343\mathrm{.}82$ $$357,682\mathrm{.}46$ Dec $31,2022$ $$17,500\mathrm{.}00$ $$16,095\mathrm{.}71$ $$1,404\mathrm{.}29$ $$356,278\mathrm{.}17$ Jun $30,2023$ $$17,500\mathrm{.}00$ $$16,032\mathrm{.}52$ $$1,467\mathrm{.}48$ $$354,810\mathrm{.}69$ Dec $31,2023$ $$17,500\mathrm{.}00$ $$15,966\mathrm{.}48$ $$1,533\mathrm{.}52$ $$353,277\mathrm{.}17$

Jun $30,2024$ $$17,500\mathrm{.}00$ $$15,897\mathrm{.}47$ $$1,602\mathrm{.}53$ $$351,674\mathrm{.}64$ Dec $31,2024$ $$17,500\mathrm{.}00$ $$15,825\mathrm{.}36$ $$1,674\mathrm{.}64$ $$350,000\mathrm{.}00$ $$175,000\mathrm{.}00$ $$161,152\mathrm{.}74$

$-$ Journal entry to record interest received and interest income at December $31,2020.$

$-$ Journal entry to record interest received and interest income at December $31,2021.$

$-$ Journal entry to record the redemption of the bond at maturity.

$-$ If Ayayai used the straight$-$line method of discount$/$premium amortization, prepare the journal entry to record interest received and interest income the company would make each June $30$ and December $31.$