On January 1, 2025, Metlock Company purchased 12% bonds having a maturity value of $270,000 for $290,470. 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 (annual). Metlock Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as held-to-maturity.

Maturity Value of Bonds
Purchase Price of Bonds
Stated Interest Rate
Bond Yield Rate
Interest Payment Term (fraction of annual)

Date	Cash Received	Interest Revenue	Bond Premium Amortization	Carrying Amount of Bonds
1/1/2025
12/31/2025
12/31/2026
12/31/2027
12/31/2028
12/31/2029

2. For the two cases prepare all of the relevant journal entries from the time of purchase until the date indicated. Use the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Assume that no reversing entries were made.) Years 2025-30