Titania Co. sells $600,000 of 12% bonds on April 1, 2018. The bonds pay interest on October 1 and April 1. The due date of the bonds is April 1, 2023. The bonds yield 10%, selling for $638,780. On July 1, 2019, Titania buys back $500,000 worth of bonds for $515,000 . Prepare journal entries through July 1, 2019.

1. Prepare the journal entries on April 1, 2018. (3%)

2. Prepare the Interest Expense and amortization entries on October 1, 2018.

(2%)

3. Prepare the adjusting entries on December 31, 2018.

4. Prepare the Interest Expense and amortization entries on April 1, 2019.

5. Prepare all the related journal entries on July 1, 2019 for the early

Extinguishment of the Bonds.