On January 1, 2025, Swifty Company issued $3,200,000 face value, 7%, 10-year bonds at $3,435,523. This price resulted in a 6% effective-interest rate on the bonds. Swifty uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1. (a) Your answer is partially correct. Prepare the journal entries to record the following transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 125.) 1. The issuance of the bonds on January 1, 2025. 2. Accrual of interest and amortization of the premium on December 31, 2025. 3. The payment of interest on January 1, 2026. 4. Accrual of interest and amortization of the premium on December 31, 2026. Date Account Titles and Explanation Debit 2025 Cash Bonds Payable Premium on Bonds Payable 31, 2025 v Interest Expense 2026 Premium on Bonds Payable Cash Interest Expense Cash 31,2026 Interest Expense Premium on Bonds Payable Cash 3435523 196815 196815 189086 Credit 3200000 235523 15815 181000 196815 7729 181357