Please fill in all of these amounts and show you arrived at your calculations.

Sage Co. sells $440,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2021. The bonds yield 8%. On October 1, 2018, Sage buys back $132,000 worth of bonds for $137,000 (includes accrued interest). Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end.

Prepare all of the relevant journal entries from the time of sale until the date indicated. Give entries through December 1, 2019. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

6/1/17 Cash-Debit Premium on Bonds Payable-Credit Bonds Payable-Credit

12/1/17

Interest Expense-Debit Premium on Bonds Payable-Debit Cash-Credit

12/31/17

Interest Expense-Debit Premium on Bonds Payable-Debit Interest Payable-Credit (3 entries)

6/1/18

Interest Expense-Debit Interest Payable-Debit Premium on Bonds Payable-Debit Cash-Credit

I

10/1/18

Bonds Payable-Debit Premium on Bonds Payable-? Gain on Redemption of Bonds-? Cash-Credit

(To record interest expense and premium amortization)

10/1/18

Bonds Payable-Debit Premium on Bonds Payable-? Gain on Redemption of Bonds-Debit Cash-Credit

(To record buy back of bonds)

12/1/18

3 Entries

12/31/18

3 Entries

6/1/19

4 Entries

12/1/19 3 Entries