Problem 10-9A Blue Spruce Corp. sold $4,000,000, 4%, 10-year bonds on January 1, 2019. The bonds were dated January 1 and pay interest annually on January 1. Blue Spruce Corp. uses the straight-line method to amortize bond premium or discount. The bonds were sold at 104. Your answer is partially correct. Try again. Prepare the journal entries for interest and the amortization of the premium in 2019 and 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Dec. 31, 2019 Premium on Bonds Payable 16000 Interest Expense 160000 Interest Payable 176000 > Jan 1, 2020 Interest Payable 176000 x Cash 176000 Dec. 31, 2020 Premium on Bonds Payable 16000 Interest Expense 160000 Interest Payable 176000 Your answer is partially correct. Try again. Show the balance sheet presentation of the bond liability at December 31, 2020. (Enter account name only and do not provide descriptive information.) Blue Spruce Corp. Balance Sheet December 31, 2020 Current Liabilities Interest Payable 176000 Long-term Liabilities Bonds Payable 4000000 Bonds Payable 32000 3968000 Add Click if you would like to Show Work for this question: Open Show Work