Question 1 View Policies Current Attempt in Progress On January 1, 2021, Sweet Acacia Ltd. issued bonds with a maturity value of $5.35 million for $5,132,790, when the market rate of interest was 8%. The bonds have a contractual interest rate of 7% 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. Sheridan Company, a public company purchased Sweet Acacia Ltd. bonds with a maturity value of $1.07 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.) (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 for the amounts. Round answers to decimal places, eg. 5,275) Debit Credit Date Account Titles and Explanation Jul. 1 (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 for the amounts. Round answers to decimal places,.. 5,275) Debit Credit Date Account Titles and Explanation Dec. 31 Interest Expense Interest Payable (To accrue interest expense.) (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 for the amounts. Round answers to decimal places 3.5.275) Debit Credit Date Account Titles and Explanation Jan. 1 Interest Payable Cash (To record payment of interest payable on bonds)