Blue Spruce Corp. sold $4,000,000, 4%, 10-year bonds on January 1, 2019. The bonds were dated January 1 and pay interest annually on January 1. Blue Spruce Corp. uses the straight-line method to amortize bond premium or discount. The bonds were sold at 104.

Prepare the journal entries for interest and the amortization of the premium in 2019 and 2020.

Debit Credit Date Account Titles and Explanation Dec. 31, 2019 Dec. 31, 2020