Rosewell Corporation sold $4,000,000, 7%, 10-year bonds on January 1, 2015. The bonds were dated January 1, 2015, and pay interest annually on January 1. Rosewell Corporation uses the straight-line method to amortize bond premium or discount. Instructions (a) Prepare all the necessary journal entries to record the issuance of the bonds X assuming that the bonds sold at 103. (b) Prepare journal entries for the interest accrual and amortization of the premium for 2015 and 2016. (c) Show the balance sheet presentation for the bond liability at December 31, 2016. (d) Calculate the total cost of borrowing for this bond

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