Question 1 of 4 View Policies Show Attempt History Current Attempt in Progress > 0.75/1 E III ... On January 1, 2021, Buffalo Ltd. issued bonds with a maturity value of $5.05 million for $4,839,920, 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, Blossom Company, a public company, purchased Buffalo Ltd. bonds with a maturity value of $1.01 million to earn interest. On December 31, 2021, the bonds were trading at 99. 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.) (g) 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 O decimal places, e.g. 5,275.) Date Account Titles and Explanation Jul. 1 (To record payment of interest on bonds.) Debit Credit (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 Account Titles and Explanation Dec. 31 (To accrue interest expense.) Debit Credit (3) The payment of interest on January 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 O for the amounts. Round answers to O decimal places, e.g. 5,275.) Date Account Titles and Explanation Debit Credit Jan. 1 (To record payment of interest payable on bonds.) eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer