Bridgeport Co. sells $425,000 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, Bridgeport buys back $136,000 worth of bonds for $142,000 (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.
date cash paid interest expense premium amortized carrying amount of bonds
6/1/20
12/1/20
6/1/21
12/1/21
6/1/22
12/1/22
6/1/23
12/1/23
6/1/24
Prepare all of the relevant journal entries from the time of sale until December 31, 2022.
6/1/20
cash
premium on bonds payable
bonds payable
12/1/20
interest expense
premium on bonds payable
interest payable
12/31/20
interest expense
premium on bonds payable
interest payable
6/1/21
interest expense
interest payable
premium on bonds payable
cash
10/1/21
bonds payable
premium on bonds payable
gain on redemption of bonds
cash
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
12/1/22
interest expense
premium on bonds payable
cash