On January 1, 2020, Sweet Company purchased $260,000, 6% bonds of Aguirre Co. for $238,911. The bonds were purchased to yield 8% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2025. Sweet Company uses the effective-interest method to amortize discount or premium. On January 1, 2022, Sweet Company sold the bonds for $240,370 after receiving interest to meet its liquidity needs.

Prepare the amortization schedule for the bonds.

c) Preparing the Journal Entries to Record the Semiannual Interest each Period:

d) Preparing the Adjusting Entry on December, 31, 2017:

e) Preparing the Journal Entry to Record the Sale of Bonds on January1, 2019: