On January 1, 2021,WindwoodInc.issued bonds with a maturity value of $6million at 104 when the market rate of interest was4.5%. The bonds have a contractual interest rate of5% and mature on January 1, 2031. Interest on the bonds is payable semi-annually on July 1 and January 1 of each year. On January 1, 2021,SummerlynnLtd, a privatecompany, purchasedWindwoodInc.bonds with a maturity value of $2million to earn interest. Summerlynn Ltd will account for the investment at amortized cost using the effrective interest method to amortize the premium or discount. On December 31, 2021, the bonds were trading at103. Both companies year end is December 31.(Show all calculations for potential part marks. Round all answer to 0 decimal places, e.g. $5,275, omitting cents.)1.What amount didSummerlynnLtdpay forWindwoodInc.s bonds?2.Prepare the journal entry for Summerlynn Ltd (investor) on January 1, 20213.Prepare the journal entries for Summerlynn to record:3.1.Thereceipt of interest on July 1, 20213.2.The accrual of interest expense on December 31 20213.3.The receipt of interest on January 1, 20224.Show how the bonds and any related asset and income statement accounts would be presented inSummerlynnLtds Balance Sheet and Income Statementfor the year ended December 31, 2021.5.Prepare the journal entry for WindwoodInc.(investee)on January 1, 20216.Prepare the journal entries for Windwood Inc. to record:6.1.Thereceipt of interest on July 1, 20216.2.The accrual of interest expense on December 31 20216.3.The payment of interest on January 1, 20227.Show how the bonds and any related asset and income statement accounts would be presented inWindwoodInc.s Balance Sheet and Income Statementfor the year ended December 31, 2021.