2. Sweet Acacia Ltd. sells $ 5.30 million of 9% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The bonds' due date is June 1, 2024. The bonds yield 8%. On October 1, 2021, Sweet Acacia buys back $ 1.06 million worth of bonds for $ 1.85 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. Schedule of Bond Discount Amortization Effective Interest Method Ca Premium Amortized Date Cash Paid Interest Expense 6/1/20 $ 12/1/20 $ 238500 $ $ 6/1/21 238500 12/1/21 238500 6/1/22 238500 12/1/22 238500 6/1/23 238500 12/1/23 238500 6/1/24 238500 Schedule of Bond Discount Amortization Effective Interest Method Premium Amortized Carrying Amount of Bonds Cash Paid Interest Expense $ S 238500 $ $ 238500 238500 238500 238500 238500 238500 238500 Date Account Titles and Explanation Debit Credit 6/1/20 Cash Bonds Payable 12/1/20 Interest Expense Bonds Payable Cash 238500 12/31/20 Interest Expense Bonds Payable Interest Payable 39750 6/1/21 Interest Expense Interest Payable 39750 Bonds Payable Cash 238500 12/31/20 Interest Expense Bonds Payable Interest Payable 39750 6/1/21 Interest Expense Interest Payable 39750 Bonds Payable Cash 238500 10/1/21 Interest Expense Bonds Payable Cash (To record payment of interest and amortization 10/1/21 Interest Expense Bonds Payable Cash (To record payment of interest and amortization amount) | DO 10/1/21 Bonds Payable Gain on Redemption of Bonds Cash (To record reacquisition of bonds) | OM 12/1/21 Interest Expense Bonds Payable Cash 12/31/21 Interest Expense (To record reacquisition of bonds) 12/1/21 Interest Expense Bonds Payable Cash 12/31/21 Interest Expense Bonds Payable Interest Payable 6/1/22 Interest Expense Interest Payable Bonds Payable | Cash 12/1/22 Interest Expense Bonds Payable Interest Payable 6/1/22 Interest Expense Interest Payable Bonds Payable Cash 12/1/22 Interest Expense Bonds Payable Cash