Sheffield Corporation sold $2,850,000, 6%, 5-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and pay interest on January 1. Sheffield Corporation uses the straight-line method to amortize bond premium or discount.

------------------------------------------------------------------------------------------------------------------------------------------

(1.) Prepare journal entries to record the issuance of the bonds and bond interest expense for 2022, assuming that the bonds sold at 95

(2.) Show the balance sheet presentation for the bond issue at December 31, 2022, using the 107 selling price.

(3.) Show the balance sheet presentation for the bond issue at December 31, 2022, using the 95 selling price.

Account Titles and Explanation Debit Credit Date Jan. 1 2764500 Cash Discount on Bonds Payable Bonds Payable Dec. 31 Interest Expense Discount on Bonds Payable Interest Payable SHEFFIELD CORPORATION Balance Sheet (Partial) December 31, 2022 2,850,000 Premium on Bonds Payable Add