Cornerstone Exercise 9-28 (Algorithmic) Debt Issued at a Discount (Straight Line) On January 1, 2020, Drew Company issued $334,000, 5-year bonds for $320,000. The stated rate of interest was 7% and interest is paid annually on December 31. Required Prepare the necessary journal entry on December 31, 2021, assuming the straight-line method is followed 2021 Dec. 31 Interest Expense Discount on Bonds Payable Cash (Record interest expense) Feechad Check My Work When bonds are issued, any premium or discount is recorded in a separate valuation account