On June 30, 2020, Waterway Company issued $3,990,000 face value of 14%, 20-year bonds at $4,590,340, a yield of 12%. Waterway uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31.

On June30, 2020, Waterway Companyissued3,990,000 face value of 14 (a) 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 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) (2) (3) (4) The issuance of the bonds on June 30, 2020. The payment of interest and the amortization of the premium on December 31, 2020. The payment of interest and the amortization of the premium on June 30, 2021. The payment of interest and the amortization of the premium on December 31, 2021. No. Date Account Titles and Explanation Debit Credit (1) June 30, 2020 Cash 4590340 Premium on Bonds Pavable 60 No. Account Titles and Explanation Debit Credit Date June 30, 2020 (1) Cash 4590340 Premium on Bonds Payable 60 Bonds Payable 399 (2) December 31, 2020 Interest Expense 275188 Premium on Bonds Payable 4112 cas 27 (3) June 30, 2021 int 274941 Premium on Bonds Payable 4359 cas 27 (4) December 31, 2021 int 274680 Premium on Bonds Payable 4620 cas 27