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Cornerstone Exercise 9-32 (Algorithmic) Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $1,200,000 in 10% bonds (payable on December 31, 2029) on January

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Cornerstone Exercise 9-32 (Algorithmic) Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $1,200,000 in 10% bonds (payable on December 31, 2029) on January 1, 2020, for $1,092,000. Interest is paid on June 30 and December 31. The market rate of interest is 12%. Required: Prepare the journal entries for December 31, 2020 and 2021. Round amounts to the nearest whole dollar. Dec. 31, 2020 Interest Expense Discount on Bonds Payable Cash Dec. 31, 2021 Interest Expense Discount on Bonds Payable Cash 000Cornerstone Exercise 9-22 (Algorithmic) Reporting Long-Term Debt on the Balance Sheet Dennis Corp. has the following bonds: a. $108,000 in bonds that have $2,000 of unamortized discount associated with them. b. $108,000 in bonds that have $3,000 of unamortized premium associated with them. Required: Prepare the balance sheet presentation for these two bonds. a. Long-term liabilities: Bonds payable Less Discount on bonds payable Carrying value b. Long-term liabilities: Bonds payable Add Premium on bonds payable Carrying value

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