Exercise 14-09 On June 30, 2020, Cullumber Company issued $3,558,000 face value of 14%, 20-year bonds at $4,093,340, a yield of 12%. Cullumber uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Prepare the journal entries to record the following transactions. (Round answer to O decimal places, e.g. 38,548. Il no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) The Issuance of the bonds on June 30, 2020. (2) The payment of interest and the amortization of the premium on December 31, 2020. (3) The payment of interest and the amortization of the premium on June 30, 2021. (4) The payment of interest and the amortization of the premium on December 31, 2021. No. Account Titles and Explanation Debit Credit Date (1) June 30, 2020 Cash 4,093,340 Bonds Payable 3558000 Premium on Bonds Paye 535340 (2) December 31, 2020 (3) June 30, 2021 (4) December 31, 2021 Balance Sheet Provide the answers to the following questions. 1) What amount of interest expense is reported for 2021? (Round answer to O decimal places, e.g. 38,548.) Interest expense reported for 2021 t 12) Will the bond interest expense reported in 2021 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used? The bond Interest expense reported in 2021 will be the amount that would be reported if the straight-line method of amortization were used. (3) Determine the total cost of borrowing over the life of the bond. (Round answer to o decimal places, e.g. 38,548.) Total cost of borrowing over the life of the bond 4) Will the total bond interest expense for the life of the bond be greater than the same as, or less than the total interest expense if the straight-line method of amortization were used? The total bond interest expense for the life of the bond will be the total interest expense if the straight-line method of amortization were used. Click if you would like to Show Work for this question: Open Show Work