Headland Co$.$ sells $\backslash (\backslash$$ $397,000\backslash )$ of $\backslash (12\backslash \%\backslash )$ bonds on June $1,2025.$ The bonds pay interest on December $1$ and June $1.$ The due date of the bonds is June $1,2029.$ The bonds yield $\backslash (8\backslash \%\backslash ).$ On October $1,2026,$ Headland buys back $\backslash (\backslash$$ $127,040\backslash )$ worth of bonds for $\backslash$$$132,040($includes accrued interest$).$ Give entries through December $1,2027.$ Prepare a bond amortization schedule using the effective$-$interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year$-$end. $($Round answers to $0$ decimal places, e$.$g$.38,548.)$Schedule of Bond Discount Amortization Effective$-$Interest Method Bonds Sold to YieldCash PaidInterest ExpensePremium AmortizedCarryir Value c Bonds$\backslash$$$\backslash$$ $3\mathrm{.}84/8$

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|$l$|\}$

$\backslash$hline Date & Cash Paid & Interest Expense & Premium Amortized & Value c Bonds $\backslash \backslash$

$\backslash$hline $6/1/25$ & $\backslash$$ $\backslash (\backslash$square $\backslash )$ & $\backslash$$ $\backslash (\backslash$square $\backslash )$ & $\backslash$$ $\backslash (\backslash$square $\backslash )$ & $\backslash$$ $\backslash (\backslash$square $\backslash )\backslash \backslash$

$\backslash$hline $12/1/25$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )\backslash \backslash$

$\backslash$hline $6/1/26$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )\backslash \backslash$

$\backslash$hline $12/1/26$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )\backslash \backslash$

$\backslash$hline $6/1/27$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )\backslash \backslash$

$\backslash$hline $12/1/27$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )\backslash \backslash$

$\backslash$hline $6/1/28$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )\backslash \backslash$

$\backslash$hline $12/1/28$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )\backslash \backslash$

$\backslash$hline $6/1/29$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )$ & $\backslash (\backslash$square $\backslash )\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Prepare all of the relevant journal entries from the time of sale until December $31,2027.($Assume that no reversing entries were made.$)($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and the final answers to $0$ decimal places, e$.$g$.58,971.$ Record entries in the order displayed in the problem statement. If no entry is required, select $"$No Entry" for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries $.$ before credit entries.$)$

Debit

Credit

Date

Account Titles and Explanation

Search

Prepare all of the relevant journal entries from the time of sale until December $31,2027.($Assume that no reversing entries were made.$)($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and the final answers to $0$ decimal places, e$.$g$.58,971.$ Record entries in the order displayed in the problem statement. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.$)6/1/25$

$12/1/25$

$12/31/25$

$6/1/26$

$10/1/26$

$12/1/26$

$12/31/26$

$6/1/27$

$12/1/27$

$($To record interest expense and premium amortization$)$

$($To record buy back of bonds$)$