On June 30, 2017, Buffalo Company issued 12% bonds with a par value of $760,000 due in 20 years. They were issued at 99 and were callable at 103 at any date after June 30, 2025. Because of lower interest rates and a significant change in the company's credit rating, it was decided to call the entire issue on June 30, 2026, and to issue new bonds. New 8% bonds were sold in the amount of $970,000 at 102; they mature in 20 years. Buffalo Company uses straight-line amortization. Interest payment dates are December 31 and June 30. (a) (b) Prepare journal entries to record the redemption of the old issue and the sale of the new issue on June 30, 2026. Prepare the entry required on December 31, 2026, to record the payment of the first 6 months' interest and the amortization of premium on the bonds. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. Date Account Titles and Explanation Debit

On June 30,2017 . Buffalo Company issued 12% bonds with a par value of $760,000 due in 20 years. They were issued at 99 and were callableat 103 at any date after June 30,2025 . Because of lower interest rates and a significant change in the company's credit rating. it was decided to call the entire issue on June 30,2026, and to issue new bonds. New 8% bonds were sold in the amount of $970,000 at 102: they mature in 20 years. Buffalo Company uses straight-line amortization. Interest payment dates are December 31 and June 30 . (a) Prepare journal entries to record the redemption of the old issue and the sale of the new issue on June 30,2026. (b) Prepare the entry required on December 31,2026, to record the payment of the first 6 months interest and the amortization of premium on the bonds. (If no entry is required, select "No Entry' for the occount tides and enter O for the amounts. Credit occount titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit (To record the redemption of the old issue) (To record the sale of the new issue)