Waterway Co. sells $376,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 8%. On October 1, 2021, Waterway buys back $116,560 worth of bonds for $120,560 (includes accrued interest). Give entries through December 1, 2022. 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.

Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Cash Paid Interest Expense Premium Amortized Carrying Amount of Bonds Date 6/1/20 $ $ $ 426630 12/1/20 22560 17065 5495 421135 6/1/21 22560 16845 5715 415420 12/1/21 22560 16617 5943 409477 6/1/22 22560 16379 6181 403296 12/1/22 22560 16132 6428 396868 6/1/23 22560 15875 6685 390182 12/1/23 22560 15607 6953 383229 6/1/24 22560 15329 7231 376000 * Difference due to rounding Prepare all of the relevant journal entries from the time of sale until December 31, 2022. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to O decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amount Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 6/1/20 Cash 426630 Bonds Payable 376000 Premium on Bonds Payable 50630 12/1/20 Interest Expense 17065 Premium on Bonds Payable 5495 Cash 22560 12/31/20 Interest Expense 2808 Premium on Bonds Payable 952 interest 3760 6/1/21 Interest Expense 14038 Interest Payable 3760 Premium on Bonds Payable 4762 Cash 22560 10/1/21 Interest Expense 3434 Premium on Bonds Payable 1228 Cash 4662 (To record interest expense and premium amortization) 10/1/21 Bonds Payable 116560 Premium on Bonds Payable 10930 Gain on Redemption of Bonds 11592 Cash 115898 (To record buy back of bonds) 12/1/21 Interest Expense 11466 Premium on Bonds Payable 4100 cash 15566 12/31/21 Interest Expense 1884 Premium on Bonds Payable 711 Interest Payable 2595 6/1/22 Interest Expense 9418 Premium on Bonds Payable 3554 Interest Payable 2594 Cash 15566 12/1/22 Interest Expense 11049 Premium on Bonds Payable 4435 Cash