On June 30, 2017, Sheffield Company issued $4,200,000 face value of 13%, 20-year bonds at $4,515,964, a yield of 12%. Sheffield uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31.

(1)		The issuance of the bonds on June 30, 2017.
(2)		The payment of interest and the amortization of the premium on December 31, 2017.
(3)		The payment of interest and the amortization of the premium on June 30, 2018.
(4)		The payment of interest and the amortization of the premium on December 31, 2018.

Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2018, balance sheet.

Interest expense reported for 2018

Will the bond interest expense reported in 2018 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used?

Total cost of borrowing over the life of the bond

Will the total bond interest expense for the life of the bond be greater than, the same as, or less than the total interest expense if the straight-line method of amortization were used?