Impact of a Premium Berol Corporation sold 20-year bonds on January 1, 2016. The face value of the bonds was $100,000, and they carry a 9% stated rate of interest, which is paid on December 31 of every year. Berol received $109,862 in return for the issuance of the bands when the market rate was 9%. Any premium ar discount is amortized using the effective Interest method. Required: 1. Prepare the journal entry to record the sale of the bonds on January 1, 2016. How does this entry affect the accounting equation? Indicate the effect on financial statement items by selecting for decrease (or negative effect), '+" for increase (ar positive effect) and "NE" for Na Entry (or no effect) on the financial statement. Journal Balance Sheet Income Statement Net Stockholders Equity Date Description Debit Credit Assets = Liabilities + Revenues Expenses Income 2016 Jan. 1 Prepare a proper balance sheet presentation for January 1, 2016 Berol Carporation Balance Sheet (Partial) January 1, 2016 $ 2. Prepare the journal entry to record interest expense on December 31, 2016. How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry' and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Journal Balance Sheet Income Statement Net Stockholders' + Equity Debit Credit Assets = Liabilities + Revenues Expenses Income Date Description 2016 Dec. 31 Prepare a proper balance sheet presentation for December 31, 2016. Berol Corporation Balance Sheet (Partial) December 31, 2016