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Accounting

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(b) Skysong Co. sells $413,000 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, Skysong buys back $128.030 worth of bonds for $134,030 (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 decimal places, eg. 38,548.) Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Carrying Cash Interest Premium Amount Date Paid Expense Amortized Bonds 6/1/20 $ 5 $ S 12/1/20 6/1/21 12/1/21 6/1/22 12/122 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, eg. 1.25124 and the final answers to decimal places eg. 58,971. I no entry is required, select "No Entry"for the account titles and enter for the amounts Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Credit 6/1/20 Debit 12/1/20 12/31/20 6/1/21 6/1/21 10/1/21 (To record interest expense and premium amortization) 10/1/21 To record buy back of bonds) 12/1/21 12/121 12/3121 6/1/22 12122

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