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Sheridan Company sold $3,160,000, 7%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually. Prepare the journal entries to record the issuance of the bonds assuming they sold at: (1) 105 and (2) 95.

Sheridan Company sold $3,160,000,7%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually. Prepare the journal entries to record the issuance of the bonds assuming they sold at: (1) 105 and (2) 95. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. 1/1/22 Cash 2938800 Premium on Bonds Payable 221200 Bonds Payable 3160000 2. 1/1/22 Cash 293800 Discount on Bonds Payable 221200 Bonds Payable 3160000 Prepare amortization table for issuance of the bonds sold at 105 for the first three interest payments. Annual Interest Periods Interest to Be Paid Interest Expense to Be Recorded Premium Amortization Unamortized Premium Bond Carrying Val Issue date Prepare amortization table for issuance of the bonds sold at 95 for the first three interest payments. Annual Interest Periods Interest to Be Paid Interest Expense to Be Recorded Discount Amortization Unamortized Discount Bond Carrying Val Issue date Prepare the journal entries to record interest expense for 2022 under both of the bond issuances assuming they sold at: (1) 105 and (2) 95. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. 12/31/22 2. 12/31/22 Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 105 at December 31, 2022. SHERIDAN COMPANY Balance Sheet (Partial) Show the long-term liabilities balance sheet presentation for issuance of the bonds sold at 95 at December 31, 2022. SHERIDAN COMPANY Balance Sheet (Partial)

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