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CALCULATOR PRINTER VERSION 4 BACK NET Question 12 On June 30, 2020, Sheffield Company issued $3,493,000 face value of 14%, 20-year bonds at $4,018,560, a yield of 12%. Sheffield uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Prepare the journal entries to record the following transactions. (Round answer to o decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) The issuance of the bonds on June 30, 2020. (2) The payment of interest and the amortization of the premium on December 31, 2020 (3) The payment of interest and the amortization of the premium on June 30, 2021 (4) The payment of interest and the amortization of the premium on December 31, 2021. Account Titles and Explanation No. Date (1) June 30, 2020 Debit Credit (2) December 31, 2020 (3) June 30, 2021 e here to search o i ED - 2 3 5 6 7 8 9 W E R. CALCULATOR PRINTER VERSION (4) December 31, 2021 Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2021, balance sheet. (Round an O decimal places, e.g. 38,548.) Sheffield Company Balance Sheet Provide the answers to the following questions. (1) what amount of Interest expense is reported for 20217 (Round answer to o decimal places, e.g. 38,548.) Interest expense reported for 2021 (2) wheboderest expense reported in 2021 be the same as greater than, or less than the amount that would be reported of the 2 3 4 & CALCULATOR PRINTER VERSION {B Provide the answers to the following questions. (1) What amount of interest expense is reported for 2021? (Round answer to o decimal places, e.g. 38,548.) Interest expense reported for 2021 (2) Will the bond interest expense reported in 2021 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used? The bond interest expense reported in 2021 will be the amount that would be reported if the straight-line method of amortization were used. (3) Determine the total cost of borrowing over the life of the bond. (Round answer to o decimal places, e.g.38,548.) Total cost of borrowing over the life of the bond (4) Will the total bond interest expense for the life of the bond be greater than the same as, or less than the total interest expense if the straight-line method of amortization were used? The total bond interest expense for the life of the bond will be amortization were used. Show Work is REQUIRED for this question: Doen Show Work the total interest expense if the straight-line method of Question Attempts: 0 of 1 used SUGET ANSWER o 2 3 4 % 5 6 & 7 8 9

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