On June 30, 2020, Sarasota Company issued $4,470,000 face value of 14%, 20-year bonds at $5,142,560, a yield of 12%. Sarasota uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Your answer is partially 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 Debit Credit Date une 30, 020 Cash 5,142,560 Bonds Payable 4,470,000 Premium on Bonds Payable 672,560 ecember 1, 2020 Interest Expense 308,554 Premium on Bonds Payable 4,346 Cash 312,900 une 30, 021 Interest Expense 308,293 Premium on Bonds Payable 4,607 Cash 312,900 ecember 1, 2021 Interest Expense 308,016 Premium on Bonds Payable 4,884 Cash 312,900 Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2021, balance sheet. (Round answers to 0 decimal places, e.g. 38,548.) Sarasota Company Balance Sheet December 31, 2021 Long-term Liabilities Bonds Payable 4,470,000 Premium on Bonds Payable 658,723 Book Value of Bonds Payable 5,128,723 Provide the answers to the following questions. (1) What amount of interest expense is reported for 2021? (Round answer to 0 decimal places, e.g. 38,548.) Interest expense reported for 2021 $ 672,560 (2) Will the bond interest expense reported in 2021 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used? The bond interest expense reported in 2021 will be greater than the amount that would be reported if the straight-li (3) Determine the total cost of borrowing over the life of the bond. (Round answer to 0 decimal places, e.g. 38,548.) Total cost of borrowing over the life of the bond $ 4,035,427 (4) 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? The total bond interest expense for the life of the bond will be the same as the total interest expense if the straight