$2$ Sweet Acacia Ltd$.$ sells $$5\mathrm{.}00$ million of $9\%$ bonds on June $1,2023.$ The bonds pay interest on December $1$ and For situation $2,$ prepare the journal entries through December $31,2025.$ Assume that no reversing entries were

made. Use the amounts arrived at from using the financial calculator. Use the effective interest method for

discount and premium amortization. $($Hint: Refer to Chapter $3$ for tips on calculating.$)($Round present value

factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answer to $0$ decimal places e$.$g$.$

$58,971.$ Credit account titles are automatically indented when the amount is entered. Do not

indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for

the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Cash

$5165606$

Bonds Payable

Interest Expense

$206,624$

Bonds Payable

$18,376$

Cash

Interest Expense

Bonds Payable

Interest Payable

Interest Expense

$171574$

Interest Payable

$34315$

Bonds Payable

Cash

Interest Expense

$15926$

Bonds Payable

Cash

$($To record payment of interest and amortization

amount$)$

$$

$($To record reacquisition of bonds$)$

June $1.$ The bonds' due date is June $1,2027.$ The bonds yield $8\%.$ On October $1,2024,$ Sweet Acacia buys back

$$1\mathrm{.}00$ million worth of bonds for $$1\mathrm{.}70$ million, including accrued interest.

Click here to view the factor table PRESENT VALUE OF $1.$

Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF $1.$

Prepare all of the relevant journal entries from the time of sale until the date indicated.