For Dingle Corporation, the following amortization table was prepared when $400,000 of 5-year, 7% bonds were sold on January 1, 2020, for $420,000.

Required:
1. Prepare the entry to recognize the issuance of the bonds on January 1, 2020.
2. Prepare the entry to recognize the first interest payment on June 30, 2020.
3. Determine what interest expense for this bond issue Dingle will report in its 2021 income statement.
4. Indicate how these bonds will appear in Dingle's December 31, 2023 balance sheet.

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Premium on Cash Interest Premium on Bonds Payable Payment (Credit) Expense (Debit) Bonds Payable (Debit) Carrying Value Period Balance At issue S20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 S420,000 418,000 416,000 414,000 412,000 410,000 408,000 406,000 404,000 402,000 400,000 06/30/20 S14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 $12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 $2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 12/31/20 06/30/21 12/31/21 06/30/22 12/31/22 06/30/23 12/31/23 06/30/24 12/31/24