On June 30, 2020, Wildhorse Company issued $3,790,000 face value of 13%, 20-year bonds at $4,075,120, a yield of 12%. Wildhorse uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. (a) Your answer has been saved. See score details after the due date. Prepare the journal entries to record the following transactions. (Round answer to decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 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. No. Date Account Titles and Explanation Debit Credit (1) June 30, 2020 Cash 4075120 Bonds Payable 37900 No. Date Account Titles and Explanation Debit Credit (1) June 30, 2020 Cash 4075120 Bonds Payable 37900 Premium on Bonds Payable 2851 (2) December 31, 2020 Interest Expense 244507 Premium on Bonds Payable 1843 Cash 2463 (3) June 30, 2021 Interest Expense 244397 Premium on Bonds Payable 1953 Cash 2463 (4) December 31, 2021 Interest Expense 244279 Premium on Bonds Payable 2071 Cash 2463 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.) Wildhorse Company Balance Sheet December 31, 2021 Long-term Liabilities Bonds Payable $ 3790000 Premium on Bonds Payable 279233 Book Value of Bonds Payable $ 4069233 Attempts: 1 of 1 used (c) 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 $ 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 $ (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 the amount that would be reported if the straight-line me (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) 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 total interest expense if the straight-line m
