Question: Cornerstone Exercise 9-28 (Algorithmic) Debt Issued at a Discount (Straight Line) On January 1, 2020, Drew Company issued $346,000, 5-year bonds for $320,000. The stated

Cornerstone Exercise 9-28 (Algorithmic) Debt Issued at a Discount (Straight Line)

Cornerstone Exercise 9-28 (Algorithmic) Debt Issued at a Discount (Straight Line) On January 1, 2020, Drew Company issued $346,000, 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 Discount on Bonds Payable Interest Expense Cash (Record interest expense)

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