On January 1, 2021 Tom Co. sold 12% bonds with par value of $400.000 which provides the bondholders with a 16% yield. The bonds are dated January 1, 2021, and will be matured on January 1, 2029 with interest payable annually (on January 1) Tom Co. retires all of the bonds at 108 on May 29, 2027. This company uses effective interest method. a. Prepare a schedule of interest expense and bond amortization! b. Prepare the journal entries for 2021 and 2027