On January 1, 2021,BuffaloLtd. issued bonds with a maturity value of $5.40million for $5,175,360, when the market rate of interest was7%. The bonds have a contractual interest rate of6% 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,SunlandCompany, a public company, purchasedBuffaloLtd. bonds with a maturity value of $1.08million to earn interest. On December 31, 2021, the bonds were trading at97. 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.)

(a)

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Your answer is correct.

What amount didSunlandCompany pay forBuffaloLtd.'s bonds?(Round answer to 0 decimal places, e.g. 5,275.)

SunlandCompany paid$

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Attempts: 2 of 3 used

(b)

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Your answer is correct.

the journal entry forSunlandCompany (investor) 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 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 1

Bonds Payable

Interest Payable

Interest Receivable

Interest Revenue

Cash

Gain on Sale of Bonds

Investment Income or Loss

Interest Expense

Investments at Amortized Cost

No Entry

Interest Expense

Interest Receivable

Investment Income or Loss

Gain on Sale of Bonds

Interest Payable

Interest Revenue

No Entry

Bonds Payable

Investments at Amortized Cost

Cash

(To record purchase of investment.)

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Attempts: 2 of 3 used

(c)

bond amortization schedule forSunlandCompany for the first four interest periods.(Round answers to 0 decimal places, e.g. 5,275.)

Bond Discount Amortization Table

Effective Interest Method-Semi-annual Interest Payments

6% Bonds Issued at market rate of7%Date

(A)

Interest Received(B)

Interest Revenue

(C)

Discount Amortization

(D)

Bond Amortized Cost

Jan. 1, 2021

$July 1, 2021

$$$Jan. 1, 2022

July 1, 2022

Jan. 1, 2023

Plz provide calculations for the table