On January 1, 2022, Flounder Company issued $1,500,000 face value, 7%, 10-year bonds at $1,610,394. This price resulted in a 6% effective-interest rate on the bonds. Flounder uses the effective-interest method to amortize bond premium or discount The bonds pay annual interest on each January 1, (a) Your answer is correct 1. Prepare the journal entries to record the following transactions. (Round answers to O decimal places, eg. 125. Credit account titles are automatically Indented when amount is entered. Do not indent manually) The issuance of the bonds on January 1, 2022 Accrual of interest and amortization of the premium on December 31, 2022. 3. The payment of interest on January 1, 2023. Accrual of interest and amortization of the premium on December 31, 2023 2 4. No. Account Titles and Explanation Debit Credit Date Jan 1 2022 1 Cash 1610394 Date Account Titles and Explanation Debit Credit Jan 1, 2022 Cash 1610394 Premium on Bonds Payable 110394 Bonds Payable 1500000 Dec 31, 2022 Interest Expense 96624 Premium on Bonds Payable 8376 Interest Payable 105000 Jan 1, 2023 Interest Payable 105000 Cash 105000 Dec. 31. 2023 Interest Expense 96121 Premium on Bonds Payable 8879 Interest Payable 105000 Show the proper long-term liabilities balance sheet presentation for the liability for bonds payable at December 31, 2023. (Round answers to decimal places, eg. 125.) FLOUNDER COMPANY Balance Sheet (Partial) December 31, 2023 ong-term Liabilities Bonds Payable 1500000 Add Premium on Bonds Payable 102018 $ 160201 e Textbook and Media Your answer is partially correct. Provide the answers to the following questions. 1. What amount of interest expense is reported for 2023? (Round answer to O decimal places, eg. 125.) Interest expense to be reported $ 2. The bond interest expense reported in 2023 would be line method of amortization were used, greater than the amount that would be reported if the straight