For Dingle Corporation, the following amortization table was prepared when $400,000 of five-year, 7 percent bonds were sold on December 31, 2008, for $420,000.

Required:
1. Prepare the entry to recognize the issuance of the bonds on December 31, 2008.
2. Prepare the entry to recognize the first interest payment on June 30, 2009.
3. Determine what interest expense for this bond issue Dingle will report in its 2010 income statement.
4. Indicate how these bonds will appear in Dingle's December 31, 2012, balancesheet.

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Premium Premium Cash Interest on Bonds on Bonds Payment x Payable Payable Carrying $20,000 $420,000 16,000 416,000 Period (Debit) At issue 6/30/09 $14,000 $12,000 $2,000 18,000 418,000 12/31/09 6/30/10 12/31/10 6/30/11 12/31/11 6/30/12 12/31/12 6/30/13 12/31/13 14,000 2,000 2,000 16 14,000 2,000 2,000 14,000 414,000 14,000 2,000 2,000 12,000 412,000 14,000 12,000 2,000 10,000 410,000 14,000 2,000 2,000 14,000 12,000 2,000 14,000 12,000 14,000 2000 2,000 14,000 ,00 2,000 8,000 408,000 6,000 406,000 4,000 404,000 2,000 402,000 0 400,000 2,000