s On June 30, 2020, Kingbird Company issued $3,420,000 face value of 16%, 20-year bonds at $4,449,160, a yield of 12%.Kingbird uses the effective- interest method to amortize bond premium or discount. The bonds pay semiannual Interest on June 30 and December 31. e and nal Con- (a) Your answer is correct. port Prepare the journal entries to record the following transactions. (Round answer to decimal places, eg. 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 Jude 30, 2021. (4) The payment of interest and the amortization of the premium on December 31, 2021. k ces ampus No. Account Titles and Explanation Debit Credit Date (1) June 30, 2020 ation Cash 4449160 1029160 Premium on Bonds Payable Bonds Payable 3420000 (2) December 31, 2020 Interest Expense 266950 Premium on Bonds Payable 6650 Cash 273600 (3) June 30, 2021 Interest Expense 266551 Premium on Bonds Payable 7049 Cash 273600 14 December 31, 2021 Interest Expense 266128 Premium on Bonds Payable 7472 Cash 273600 (b) Your answer is correct. Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2021, balance sheet. (Round answers to decimal places, eg.38,548) Kingbird Company Balance Sheet December 31, 2021 Long-term Liabilities Bonds Payable 3.420.000 Premium on Bonds Payable 1007989 Book Value of Bonds Payable 4427989 (c) Provide the answers to the following questions. (1) What amount of interest expense is reported for 2021? (Round answer to decimal places, eg.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? sterest expense reported in 2021 will be the amount that would be reported if the straight-line method of amortization were used. (3) Determine the total cost of borrowing over the life of the bond. (Round answer to decimal places, eg 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 method of amortization