Current Attempt in Progress On June $30,2025,$ Thomas Taylor Company issued $\backslash$$$4,860,000\mathrm{.}00$ face value of $14\backslash \%,20-$year bonds at $\backslash$$$5,591,240\mathrm{.}00,$ a yield of $12\backslash \%.$ Taylor uses the effective$-$interest method to amortize bond premium or discount. The bonds pay semiannual interest on June $30$ and December $31.$ Click here to view factor tables. $($a$)$ Your answer is correct. Prepare the journal entries to record the following transactions. $($Round answer to $2$ decimal places, eg$.38,548\mathrm{.}25.$ 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.$)1.$ The issuance of the bonds on June $30,2025.2.$ The payment of interest and the amortization of the premium on December $31,2025.3.$ The payment of interest and the amortization of the premium on June $30,2026.4.$ The payment of interest and the amortization of the premium on December $31,2026.$

Your answer is correct.

Show the proper balance sheet presentation for the liability for bonds payable on the December $31,2026,$ balance sheet. $($Round answers to $2$ decimal places, e$.$g$.\backslash (38,548\mathrm{.}25\backslash ).)$

Taylor Company

Balance Sheet

December $31,2026$

Long$-$Term Liabilities

Bonds Payable

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Premium on Bonds Payable

Book Value of Bonds Payable

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eTextbook and Media

List of Accounts

Attempts: $2$ of $4$ used

$($c$)$

Provide the answers to the following questions.

Provide the answers to the following questions$$

$1$What amount of interest expense is reported for $2026$Round answer to $2$ decimal places$$e$$g$3854825$

Interest expense reported for $2026$

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$2$Will the bond interest expense reported in $2026$ be the same as$$greater than$$or less than the amount that would be reported if the straight$$line method of amortization were used$$

The bond interest expense reported in $2026$ will be the asjount that would be reported if the straight$$line met

$3$Determine the total cost of borrowing over the life of the bond$$Round answer to $0$ decimal places$$eg$38548$

Total cost of borrowing over the life of the bond

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$4$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 me