Current Attempt in PPO On January 1, 2021, Buffalo Ltd. issued bonds with a maturity value of $5.40 million for $5,175,360, when the market rate of interest was 7%. The bonds have a contractual interest rate of 6% and mature on January 1, 2026. Interest on the bonds is payable semi-annually on July 1 and January 1 of each year. On January 1, 2021, Sunland Company, a public company, purchased Buffalo Ltd. bonds with a maturity value of $1.08 million to earn interest. On December 31, 2021, the bonds were trading at 97. Both companies' year end is December 31. rosent Value of 1 What amount did Sunland Company pay for Buffalo Ltd's bonds? (Round answer to O decimal places, eg. 5,275.) Sunland Company paid $ 1035072 Your Answer Correct Answer (Used) Prepare the journal entry for Sunland Company (investor) on January 1, 2021. (Credit account titles are automatically ir when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter amounts. Round answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Jan. 1 Investments at Amortized Cost v 1,035,072 Cash 1,035,072 (To record purchase of investment.) 2 Interestireceiveu TITLE strEVETUL DISCUUTTL RITULIZATOTT DUT AITOTEZULUS $ 1035072 $ 32400 $ 36227.52 $ 3827.52 1038899.52 32400 36361.48 3961.48 1042861 32400 36500.14 4100.14 1046961.14 32400 36643.64 4243.64 1051204 $ 1035072 $ 32400 $ 36227.52 $ 3827.52 1038899.52 32400 36361.48 3961.48 1042861 32400 36500.14 4100.14 1046961.14 32400 36643.64 4243.64 1051204 Jan. 1, 2021 $ 3827 July 1. 2021 $ 36227.52 32400 $ 36361.48 3961 Jan. 1, 2022 32400 36500.14 4100. July 1, 2022 32400 Jan. 1. 2023 4243.C 36643.64 32400 Date Account Tities and Explanation Debit Credit July 1 Cash 32400 Investments at Amortized Cost 3827.52 Interest Revenue 36227.52 (To record collection of interest on bonds.) (2) The accrual of interest on December 31 2071 (Credit NOW decimal places, eg. 5,275.) Date Account Titles and Explanation Debit Credit Dec. 31 Interest Receivable 32400 Investments at Amortized Cost v 3961.48 Interest Revenue 36361.48 (To accrue interest revenue.) Date Account Titles and Explanation Debit Credit lan. 1 Cash 32400 Interest Receivable 32400 (Collection of interest receivable.) Show how the bonds and related income statement accounts would be presented in Sunland Company's financial statements for the year ended December 31, 2021. (Round answers to O decimal places, eg. 5,275.) SUNLAND COMPANY Balance Sheet (Partial) December 31, 2021 Current Assets Interest Receivable 32,400 Non-Current Assets Investments at Amortized Cost 1,042,862 SUNLAND COMPANY Income Statement (Partial) Year Ended December 31, 2021 Other Revenues Interest Revenue $ 72,590 Prepare the journal entry for Buffalo Ltd. (investee) on January 1, 2021. (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 O for the amounts. Round answers to decimal places, eg. 5,275.) Date Account Titles and Explanation Debit Credit Jan. 1 (To record issuance of bonds payable.)