On January 1, 2019, Bramble Corp. issued $3,500,000 face value, 11%, 10-year bonds at $3,715,060. This price resulted in an effective-interest rate of 10% on the bonds. Bramble uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1.

Prepare the journal entries to record the following transactions. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(1)		The issuance of the bonds on January 1, 2019.
(2)		Accrual of interest and amortization of the premium on December 31, 2019.
(3)		The payment of interest on January 1, 2020.
(4)		Accrual of interest and amortization of the premium on December 31, 2020.

5. Show the proper long-term liabilities balance sheet presentation for the liability for bonds payable at December 31, 2020. (Enter account name only and do not provide descriptive information.)

Problem 10-13A On January 1, 2019, Bramble Corp. issued $3,500,000 face value, 11%, 10-year bonds at $3,715,060. This price resulted in an effective-interest rate of 10% on the bonds. Bramble uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1. Your answer is correct. Prepare the journal entries to record the following transactions. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) The issuance of the bonds on January 1, 2019. (2) Accrual of interest and amortization of the premium on December 31, 2019. (3) The payment of interest on January 1, 2020. (4) Accrual of interest and amortization of the premium on December 31, 2020. No. Date Account Titles and Explanation Debit Credit (1) Jan 1, 2019 Cash 3715060 Premium on Bonds Payable 215060 Bonds Payable 3500000 (2) Dec. 31, 2019 Interest Expense 371506 Premium on Bonds Payable 13494 Interest Payable 385000 (3) Jan 1, 2020 Interest Payable 385000 Cash 385000 (4) Dec. 31, 2020 Interest Expense 370157 Premium on Bonds Payable 14843 Interest Payable 385000 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Show the proper long-term liabilities balance sheet presentation for the liability for bonds payable at December 31, 2020. (Enter account name only and do not provide descriptive information.) Bramble Corp. Balance Sheet December 31, 2020 Bonds Payable 3500000 X Add Premium on Bonds Payable 186773 3313227