On January 1, 2025, Hi and Lois Company purchased 12% bonds, having a maturity value of $300,000 for $322,744.44. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2025, and mature January 1, 2030, with interest received on January 1 of each year. Hi and Lois 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 schodule. (Round answers to 2 decimol places, es, 1,225.25. Your answer is partially correct. Prepare the journal entry to record the interest revenue and the amortization at December 31, 2026. (List oll debit entries before credit entries. Credlt occount titles are outomatically indented when amount is entered. Do not indent manubliy. If no entry is required, select "No Entry" for the occount titles and enter O for the amounts. Round onswers to 2 decimal places, eg. 1,225.25