Bonds Issued at a Premium $($Effective Interest$)$

Haley Industries issued $$120,000$ of $11\%,7-$year bonds on January $1,2024,$ with a $$5,842$ premium. Interest is paid annually on December $31.$ The market rate of interest is $10\%.$

Required:

Record the journal entries for December $31,2025$ and $2026.$ If an amount box does not require an entry, leave it blank. When required, round amounts to the nearest whole dollat