PROBLEM 10-5 PART 2

Bonita Co. sells $376,000 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, Bonita buys back $116,560 worth of bonds for $120,560 (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. (Round answers to 0 decimal places, e.g. 38,548.)

Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield
Date		Cash Paid		Interest Expense		Discount Amortized		Carrying Amount of Bonds
6/1/17		$		$		$		$
12/1/17
6/1/18
12/1/18
6/1/19
12/1/19
6/1/20
12/1/20
6/1/21

* Difference due to rounding 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.)

Date	Account Titles and Explanation	Debit	Credit
6/1/17
12/1/17
12/31/17
6/1/18
10/1/18
	(To record interest expense and premium amortization)
10/1/18
	(To record buy back of bonds)
12/1/18
12/31/18
6/1/19
12/1/19