On January 1, 2022, Sheffield Company issued $2,700,000 face value, 7%, 10-year bonds at $2,898,710. This price resulted in a 6% effective-interest rate on the bonds. Sheffield 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. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. The issuance of the bonds on January 1, 2022. 2. Accrual of interest and amortization of the premium on December 31, 2022. 3. The payment of interest on January 1, 2023. 4. Accrual of interest and amortization of the premium on December 31, 2023.

No. Date Account Titles and Explanation Debit Credit 1. Jan. 1, 2022 2. Dec 31, 2022 3. Jan. 1, 2023 4. Dec 31, 2023 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.) SHEFFIELD COMPANY Balance Sheet (Partial) eTextbook and Media List of Accounts Provide the answers to the following questions. 1. What amount of interest expense is reported for 2023? (Round answer to 0 decimal places, e.g. 125.) Interest expense to be reported $ 2. The bond interest expense reported in 2023 would be the amount that would be reported if the straight-line method of amortization were used