SITUATION $2$ ONLY:For situation $2,$ prepare the journal entries through December $31,2025.$ Assume that no reversing entries were made. Use the amounts arrived at from using the financial calculator. Use the effective interest

method for discount and premium amortization. $($Hint: Refer to Chapter $3$ for tips on calculating.$)($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answer to $0$ dec

places e$.$g$.58,971.$ 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 ar

enter $0$ for the amounts. List all debit entries before credit entries.$)$Interest Payable

Bonds Payable

Cash

Interest Expense

Bonds Payable

$1$

$$

$]$

$($To record payment of interest and amortization amount$)$

$]$

Bonds Payable

$]$

$($To record reacquisition of bonds$)$Bonds Payable

Bonds Payable

$\frac{6}{1}\frac{?}{25}$

Bonds Payable

$$

$$

$$

$1$

$1$

$$

$$

$$

$$

In the following two independent cases, the company closes its books on December $31$:

Sage Hill Inc. sells $$2\mathrm{.}01$ million of $8\%$ bonds on March $1,2023.$ The bonds pay interest on September $1$ and March $1.$ The bonds' due date is September $1,2026.$ The bonds yield $10\%.$ back $$1\mathrm{.}08$ million worth of bonds for $$1\mathrm{.}73$ million, including accrued interest.

Click here to view the factor table PRESENT VALUE OF $1.$

Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF $1.$

Prepare all of the relevant journal entries from the time of sale until the date indicated.