On June 30, 2020, Blossom Company issued $3,990,000 face value of 14%, 20-year bonds at $4,590,340, a yield of 12%. Blossom uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. (a) (b) Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2021, balance sheet. (Round answers to O decimal places, e.g. 38,548.) Your answer is correct. Prepare the journal entries to record the following transactions. (Round answer to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) The issuance of the bonds on June 30, 2020. (2) The payment of interest and the amortization of the premium on December 31, 2020. (3) The payment of interest and the amortization of the premium on June 30, 2021. (4) The payment of interest and the amortization of the premium on December 31, 2021. Account Titles and Explanation Date June 30, 2020 Cash Bonds Payable Premium on Bonds Payable Debit 4,590,340 December Interest Expense 275,420 31, 2020 Premium on Bonds Payable 3,880 Cash June 30, 2021 Interest Expense Premium on Bonds Payable Cash 275,188 4,112 December Interest Expense 274,941 31, 2021 Premium on Bonds Payable 4,359 Cash Credit 3.990.000 600,340 279,300 279,300 279,300 Long-term Liabilities Bonds Payable Premium on Bonds Payable Blossom Company Balance Sheet December 31, 2021 $ Book Value of Bonds Payable $ |