On June 30, 2025, Thomas Taylor Company issued $4,860,000.00 face value of 14%, 20-year bonds at $5,591,240.00, a yield of 12%. Taylor uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and - December 31. Click here to view factor tables. (a) Your answer is correct. Prepare the journal entries to record the following transactions. (Round answer to 2 decimal places, e.g. 38,548.25. 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.) 1. The issuance of the bonds on June 30, 2025. 2. The payment of interest and the amortization of the premium on December 31, 2025. 3. The payment of interest and the amortization of the premium on June 30, 2026. 4. The payment of interest and the amortization of the premium on December 31, 2026. 1. The issuance of the bonds on June 30, 2025. 2. The payment of interest and the amortization of the premium on December 31, 2025. 3. The payment of interest and the amortization of the premium on June 30, 2026. 4. The payment of interest and the amortization of the premium on December 31, 2026. Account Titles and Explanation Cash Bonds Payable Premium on Bonds Payable 2025 Interest Expense Debit 5,591,240 335,474 4,726 Premium on Bonds Payable Credit 4,860,000 731,240 2025 Interest Expense 2026 335,474 Premium on Bonds Payable 4,726 Cash Interest Expense Premium on Bonds Payable Cash Interest Expense Premium on Bonds Payable Cash 335,191 5,009 334,890 5,310 340,200 340.200 340.200 Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2026, balance sheet. (Round answers to 2 decimal places, e.g. 38,548.25.) Long-Term Liabilities Taylor Company Balance Sheet December 31, 2026 +A $ $ Book Value of Bonds Payable