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On January $1,2020,$ Carla Vista Company issued $2,190,000,6\%,10-$year bonds at $2,359,106.$ This price resulted in a $5\%$ effective$-$

interest rate on the bonds. Carla Vista uses the effective$-$interest method to amortize bond premium or discount. The bonds pay

annual interest on each January $1$

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 $1,2020.$

$(2)$ Accrual of interest and the amortization of the premium on December $31,2020.$

$(3)$ The payment of interest on January $1,2021.$

$(4)$ Accrual of interest and amortization of the premium on December $31,2021.$

No$.$ Date Account Titles and Explanation

Debit

Credit

Jan. $(1),1,2020$

Dec. $(2),31,2020$

Jan. $(3),1,2021$

$(4)$ Dec.

$31,$

$2021$

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Show the proper long$-$term liabilities statement of financial position presentation for the liability for bonds payable at December

$31,2021.($Round answers to $0$ decimal places, e$.$g$.15,250.$ Enter account name only and do not provide descriptive information.$)$

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Provide the answers to the following questions.

$(1)$ What amount of interest expense is reported for $2021?($Round answers to $0$ decimal places, e$.$g$.15,250.)$

Interest expense reported for $2021,$

$(2)$ Would the bond interest expense reported in $2021$ 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 $2021$ will be $$ the amount that would be reported if the straight$-$line met

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