On January 1, 2020, Sarasota Company purchased 10% bonds having a maturity value of $420,000, for $453,537.42. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Sarasota Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.

1. Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2020

2. Prepare a bond amortization schedule

3. Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020.

Date	Account Titles and Explanation	Debit	Credit
Dec. , 2020

4. Prepare the journal entry to record the interest revenue and the amortization at December 31, 2021

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2021

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