On April 1, 2021, Sarasota Corporation issued $416,000, 5-year bonds. On this date, Shoreline Corporation purchased the bonds from Sarasota to earn interest. Interest is received semi-annually on April 1 and October 1 and Shorelines year end is March 31. Below is a partial amortization schedule for the first three interest periods of the bond issue.

Semi-Annual Interest Period			Interest Received			Interest Revenue			Amortization			Bond Amortized Cost
April 1, 2021												$435,182
October 1, 2021			$8,320			$6,528			$1,792			433,390
April 1, 2022			8,320			6,501			1,819			431,571
October 1, 2022			8,320			6,474			1,846			429,725

1. Face value of the bonds

2. What is the bonds contractual interest rate? The market interest rate? (Round answers to 2 decimal places, e.g. 52.75.)

		Annual		Semi-annual
Contractual interest rate		enter percentages rounded to 2 decimal places %		enter percentages rounded to 2 decimal places %
Market interest rate		enter percentages rounded to 2 decimal places %		enter percentages rounded to 2 decimal places %

3. Prepare the journal entries to record the purchase of the bonds; the receipt of interest on October 1, 2021; the accrual of interest on March 31, 2022; and the receipt of interest on April 1, 2022. (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.) i) (To record purchase of investment.)

ii) (To record collection of interest.)

iii) (To accrue interest revenue.)

iv) (Collection of interest receivable.)