When market interest rates were 6%, three companies issued bonds on January 1, 2021. Each company has a December 31 year end and each company issued bonds with a face value of $100,000 that pay interest annually on December 31. Vaughn Limited sold its bonds at 100 and offered a coupon interest rate of 6%, while Sheffield Corp. sold its bonds at 93 and offered a coupon interest rate of 4%, and Swifty Inc. sold its bonds at 104 and offered a 7% coupon interest rate.

Record the issue of the bonds by each company on January 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)

Prepare the entry that each company would record for the payment of interest on December 31, 2021. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)

Determine the balance in each companys Bonds Payable account on December 31, 2021.