CALCULATOR FULL SCREEN PRINTER VERSION & RACK NEXT Problem 10-11A (Part Level Submission) On January 1, 2017, Swifty Company issued $2,010,000 face value, 9%, 10-year bonds at $2,144,872. This price resulted in a 8% effective interest rate on the bonds. Swifty uses the effective interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1. Your answer is partially correct. Try again. Prepare the journal entries to record the following transactions. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically Indented when amount is entered. Do not indent manually.) 1. The issuance of the bonds on January 1, 2017 2. Accrual of interest and amortization of the premium on December 31, 2017 3. The payment of Interest on January 1, 2018 4. Accrual of interest and amortization of the premium on December 31, 2018 No. Date Account Titles and Explanation Debit Credit Jan 1, 2017 Cash 2144872 Bonds Payable 2010000 Premium on Bonds Payable 134872 2. Dec 31, 2017 Interest Expense 171590 Premium on Bonds Payable 9310 Interest Payable 180900 2. Dec. 31, 2017 Interest Expense 171590 Premium on Bonds Payable 9310 Interest Payable 180900 3. Jan. 1, 2018 Jinterest Payable 180900 Cash 180900 4. Dec. 31, 2018 Interest Expense 171590 Premium on Bonds Payable 9310 Interest Payable 180900