On January 1, 2020, Buffalo Company purchased 8% bonds having a maturity value of $440,000, for $477,069.47. The bonds provide the bondholders with a 6% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Buffalo Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.

Prepare a bond amortization schedule.

Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method Interest Premium Revenue Amortized Date Cash Received Carrying Amount of Bonds 1/1/20 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25