Problem 10-11A

I, Accounting, 6e CALCULATOR PRINTER VERSIONBACK NEXT Problem 10-11A On January 1, 2017, Sheffield Company issued $1,950,000 face value, 8%, 10-year bonds at $2,006,960 This price resulted in a 7% effective-interest rate on the bonds. Sheffield uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each january Prepare the journal entries to record the following transactions, (Round answers to o 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 1.Jan. 1, 2017 2. Dec. 31, 2017 3. Jan. 1, 2018 4. Dec. 31, 2018 SHOW LEST OF ACCOUNTS Show the proper long-term liabilities balance sheet presentation for the liability for bonds payable at December 31, 2018. (Round answers to 0 decimal places, e.g 125.)