Problem 10-13A On January 1, 2019, Blue Spruce Corp. issued $2,280,000 face value, 10%, 10-year bonds at $2,426,323. This price resulted in an effective interest rate of 9% on the bonds. Blue Spruce 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. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) The issuance of the bonds on January 1, 2019. (2) Accrual of interest and amortization of the premium on December 31, 2019. (3) The payment of interest on January 1, 2020. (4) Accrual of interest and amortization of the premium on December 31, 2020. No. Date Account Titles and Explanation Debit Credit (1) Jan. 1, 2019 | Cash 2426323 Premium on Bonds Payable 146323 Bonds Payable 2280000 (2) Dec. 31, 2019 Interest Expense Premium on Bonds Payable Interest Payable 228000 (2) Dec. 31, 2019 Interest Expense X Premium on Bonds Payable Interest Payable 228000 (3) T Jan 1, 2020 | Interest Payable 228000 Cash 228000 x (4) Dec. 31, 2020 Interest Expense Premium on Bonds Payable Interest Payable 2280001 SHOW LIST OF ACCOUNTS I TNK TO TFYT I TNK TO TFYT Blue Spruce Corp. Balance Sheet December 31, 2020 X Bonds Payable 2426323 Add Premium on Bonds Payable SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. What amount of interest expense is reported for 2020? Interest expense Would the bond interest expense reported in 2020 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 2020 will be greater than the amount that would be reported if the straight-line method of amortization were used Click if you would like to Show Work for this question: Open Show Work