Your answer 15 partially Correct. Headland Co. sells $424,000 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 10%. On October 1, 2021, Headland buys back $131,440 worth of bonds for $138,440 (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. (Round answers to 0 decimal places, e.g. 38,548.) Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Cash Paid Date Interest Expense Premium Amortized Carrying Amount of Bonds Date $ 451,404 6/1/20 12/1/20 25,440 22,570 2,870 448,534 6/1/21 25,440 22427 3,013 445,521 12/1/21 25,440 22276 3,164 442,357 6/1/22 25,440 22118 3,322 439,035 12/1/22 25,440 21952 3,488 435,547 6/1/23 25,440 21777 3,663 431,884 12/1/23 25,440 21594 3,846 428,038 6/1/24 25,440 21402 4,038 424,000 Debit Credit Date Account Titles and Explanation 6/1/20 Cash 451,404 Premium on Bonds Payable 27,404 Bonds Payable 424,000 12/1/20 Interest Expense 22,570 Premium on Bonds Payable 2,870 Cash 25,440 12/31/20 Interest Expense 3,738 Premium on Bonds Payable 502 Interest Payable 4,240 6/1/21 Interest Expense 18,689 Interest Payable 4,240 Premium on Bonds Payable 2,511 2, Cash 25,440 10/1/21 Interest Expense 4,514 Premium on Bonds Payable 633 Cash 5,147 (To record interest expense and premium amortization) 10/1/21 Bonds Payable 131,440 Premium on Bonds Payable Gain on Redemption of Bonds Cash 133,182 (To record buy back of bonds) 12/1/21 Interest Expense Premium on Bonds Payable Cash 12/31/21 Interest Expense Premium on Bonds Payable Interest Payable 6/1/22 Interest Expense Interest Payable Premium on Bonds Payable Cash 17,808 12 1/22 Interest Expense Premium on Bonds Payable Cash 17,808