Swifty Co. sells $414,000 of 12% bonds on June 1, 2025. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2029. The bonds yield 10%. On October 1, 2026 Swifty buys back $136,620 worth of bonds for $143,620 (includes accured interest). Give injuries through December 1, 2027. 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.

Also prepare all of the relevent journal entries from the time of sale until December 31, 2027 (assume that no reversing injuries were made).