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On June 30,2025 , Donald Martin Company issued $3,270,000,00 face value of 13%,20-year bonds at $3,516,000,00, a yield of 12%. Martin uses the effective-interest method

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On June 30,2025 , Donald Martin Company issued $3,270,000,00 face value of 13%,20-year bonds at $3,516,000,00, a yield of 12%. Martin 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) Prepare the journal entries to record the following transactions. (Round answer to 2 decimal places, es, 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 . Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2026, balance sheet. (Round answers to 2 decimal ploces. eg. 38.54825 i Provide the answers to the following questions. 1. What amount of interest expense is reported for 2026? (Round answer to 2 decimal places, eg. 38, 548.25) Interest expense reported for 2026 2. Wil the bond interest expense reported in 2026 be the same as, ireater than, or less than the amount that would be reported if the straight-line method of amortiration were used? The bond interest expense reported in 2026 will be the amount that wocild be reported if the straight-line method of amortit: 3. Determine the total cost of borrowing over the life of the bond, (Round answer to 0 decimal ploces, es. 38,548.) Total cost of borrowing over the life of the bond 4. Wil 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 bord interest oxpense for the life of the bond will be the total interest expense if the strayght-line method of amortization wer

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