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. 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 (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Prepare the journal entries for Buffalo Ltd. to record: (1) The payment of interest on July 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 0 decimal places, eg. 5,275.) Date Account Titles and Explanation Debit Credit Jul. 1 Interest Expense 181138 Bonds Payable 19138 Cash 162000 (To record payment of interest on bonds.) (2) The accrual of interest expense on December 31, 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 O decimal places, e.g. 5,275.) Date Credit Debit Account Titles and Explanation Dec. 31 Interest Expense 181807 19807 Bonds Payable 162000 Interest Payable (To accrue interest expense.) Date Credit Debit Account Titles and Explanation 162000 Jan. 1 Interest Payable Cash 162000 (To record payment of interest payable on bonds.) BUFFALO LTD. Balance Sheet (Partial) December 31, 2021 Current Liabilities Interest Payable $ 162000 Non-Current Liabilities Bonds Payable $ Bonds Payable BUFFALO LTD. Income Statement (Partial) Year Ended December 31, 2021 Other Expenses $ Investment Income or Loss