Question 1 On June 30, 2020, Waterway Company issued $4,860,000 face value of 14%, 20-year bonds at $5,591,240, 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. (a) Your answer is correct. Prepare the journal entries to record the following transactions. (Round answer to 0 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. 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.) Waterway Company Balance Sheet For the Year Ended December 31, 2021 Long-term Liabilities Bonds Payable 4860000 $ Premium on Bonds Payably 731240 Book Value of Bonds Payable v 680400