On January 1, 2015, Ashlock Chemical Company issued $4,000,000, 10%, 10 year bonds at $4, 543, 627. This price resulted in an 8% effective-interest rate on the bonds. Ashlock uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January1. (Round all computations to the nearest dollar) (a) Prepare the journal entries to record the following transactions. (1) The issuance of the bonds on January 1, 2016. (2) Accrual of interest and the amortization of the premium on December 31, 2015. (3) The payment of interest on January 1, 2016. (4) Accrual of interest and amortization of the premium on December 31, 2016. (b) Show the proper long-term liabilities balance sheet presentation for the liability for bonds payable at December 31, 2016. (c) Provide the answers to the following questions in letter form. (1) What amount of interest expense is reported for 2016? (2) Would the bond interest expense reported in 2016 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used? Prepare entries to record issuance of bonds, payment of interest, and amortization of premium using effective-interest method. (a) Amortization $36, 510 (a) amortization $39, 431 (b) Bond carrying value $4, 467, 686