Woode Corporation issued $400,000, 7%, 20-year bonds on January 1, 2022, for $360,727. This price resulted in an effective-interest rate of 8% on the bonds. Interest is payable annually on January 1. Woode uses the effective-interest method to amortize bond premium or discount. 

Instructions 

Prepare the journal entries to record (round to the nearest dollar): 

a. The issuance of the bonds. 

b. The accrual of interest and the discount amortization on December 31, 2022. 

c. The payment of interest on January 1, 2023.