On January 1, 2020, Vaughn Company purchased 8% bonds having a maturity value of $360,000, for $390,329.57. 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. Vaughn Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.

B) Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.)

Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method
Date		Cash Received		Interest Revenue		Premium Amortized		Carrying Amount of Bonds
1/1/20		$enter a dollar amount rounded to 2 decimal places		$enter a dollar amount rounded to 2 decimal places		$enter a dollar amount rounded to 2 decimal places		$enter a dollar amount rounded to 2 decimal places
1/1/21		enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 2 decimal places
1/1/22		enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 2 decimal places
1/1/23		enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 2 decimal places
1/1/24		enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 2 decimal places
1/1/25		enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 2 decimal places

C) Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020. AND ALSO FOR 2021 (Round answers to 2 decimal places, e.g. 2,525.25.

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2020

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