CL0 2 Assignment 2 On January 1, 2020, Dana Company issued $2.000,000 face value, 7%, 10-year bonds at $2,150,000 This price resulted in a 6% effective-interest rate on the bonds. Dana uses the effective interest method to amortize bond premium or discount. The bonds pay annual interest on the beginning of each January. Instructions: (1) Prepare journal entries to record the following transactions: i. The issuance of bonds on January 1, 2020 ii. Accrual of interest and amortization of the premium on December 31, 2020. iii. The payment of interest on January 1, 2021. iv. Accrual of interest and amortization of the premium on December 31, 2021. (2) Show the proper non-current liabilities statement of financial position presentation for the bond liability at December 31, 2021. (3) Prepare a bond premium amortization schedule for the first three periods if Dana uses the straight-line method to amortize premium. (4) Assume the issued bonds were sold at $1,800,000 at 8% effective interest rate, prepare a bond discount schedule for the first four periods under the effective interest rate method