Headland Co$.$ Sells $$397,000$ of $12\%$ bonds on June $1,2025$

Interest Expense

Premium on Bonds Payable

Cash

$10/1/26$

Interest Expense

$6203$

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

$12/1/26$

Bonds Payable

Premium on Bonds Payable

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

Interest Expense

Interest Expense

$17,369$

Premium on Bonds Payable

$6,451$

$12/1/27$

Interest Expense

$17,111$

Premium on Bonds Payable

$6,709$

$12/1/27$

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