Hi. I need help with this accounting problem:

Sarasota Corporation sold $2,750,000, 6%, 5-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on January 1. Sarasota Corporation uses the straight-line method to amortize bond premium or discount. Show the balance sheet presentation for the bond issue at December 31, 2017, using the 102 selling price.

I'm having trouble figuring out the balance sheet. I have attached a screen shot of the items highlighted in red that are giving me an error. According to my textbook, to determine the Premium, we should multiple 2% in this example, since its using a 102 selling price, by the bond selling price of $2,750,000. By doing this, I get $55,000, which I have entered below, but apparently its incorrect. To calculate the total cost of borrowing, I added $55,000 with $2,750,000 to get to $2,805,000, which is also showing its incorrect. Can you help guide me to see what I'm doing wrong?

Thanks,

Angela

(1) Show the balance sheet presentation for the bond issue at December 31, 2017, using the 102 selling price. SARASOTA CORPORATION Balance Sheet (Partial) December 31, 2017 Current Liabilities 165000 Interest Payable Long-term Liabilities 2750000 Bonds Payable L Add Premium on Bonds Payab 55000 2805000