Current Attempt in Progress On June 30, 2020, Sandhill Company issued $3,810,000 face value of 16%, 20-year bonds at $4,956,520, a yield of 12%. Sandhill 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 Ofor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) (2) (3) (4) The issuance of the bonds on June 30, 2020. The payment of interest and the amortization of the premium on December 31, 2020. The payment of interest and the amortization of the premium on June 30, 2021. The payment of interest and the amortization of the premium on December 31, 2021. Date Account Titles and Explanation Debit Credit June 30, 2020 Cash 4956520 Bonds Payable 3810000 Premium on Bonds Payable 1146520 December 31, 2020 Interest Expense 297391 Premium on Bonds Payable 7409 Cash 304800 June 30, 2021 Interest Expense 296947 Premium on Bonds Payable 7853 Cash 304800 December 31, 2021 Interest Expense 296475 Premium on Bonds Payable 8325 Cash 304800 (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 0 decimal places, eg. 38,548.) Sandhill Company Balance Sheet December 31, 2021 Long-term Liabilities Bonds Payable $ 3810000 Premium on Bonds Payable 1122933 Book Value of Bonds Payable $ 4932933 (b) Your answer is correct. Prepare a schedule of interest expense and bond amortization for 2020-2022. (Round answer to 0 decimal places, eg. 38,548.) Schedule of Interest Expense and Bond Premium Amortization Effective-Interest Method Interest Premium Expense Amortized Cash Paid Carrying Amount of Bonds $ i $ i $ 559,889 55,000 44,791 10,209 549,680 55,000 43,974 11.026 538,655 55,000 43,092 11,908 526,747 (b) Your answer is correct. Prepare a schedule of interest expense and bond amortization for 2020-2022. (Round answer to 0 decimal places, eg. 38,548.) Schedule of Interest Expense and Bond Premium Amortization Effective-Interest Method Interest Premium Expense Amortized Cash Paid Carrying Amount of Bonds $ i $ i $ 559,889 55,000 44,791 10,209 549,680 55,000 43,974 11.026 538,655 55,000 43,092 11,908 526,747