On May $1,2025,$ Cullumber Corporation purchased $$1,630,000$ of $12\%$ bonds, interest payable on January $1$ and July $1,$ $$1,528,408$ plus accrued interest. The bonds mature on January $1,2031.$ Amortization is recorded when interest is rece straight$-$line method. $($Assume the bonds are classified as available$-$for$-$sale.$)$

$($a$)$

Prepare the journal entry for May $1,2025.($List all debit entries before credit entries. Credit account titles are automatically i when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for t$)$ amounts.$)$

Date Account Titles and Explanation

May $1,$

$2025$

$($b$)$

The bonds are sold on August $1,2026$ for $$1,412,500$ plus accrued interest. Prepare all entries required to properly record the sale. $($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Round answers to $0$ decimal places, e$.$g$.5,275.)$

Account Titles and Explanation

Debit

Credit

$($To record amortization$)$

$($To record interest$)$