Cornerstone Exercise 9-32 (Algorithmic) Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $1,600,000 in 896 bonds (payable on December 31, 2029) on January 1, 2020, for $1,472,000. Interest is paid on June 30 and December 31 . The market rate of interest is 10%. Required: Prepare the journal entries for December 31, 2020 and 2021. Round amounts to the nearest whole dollar. Interest Expense Discount on Bonds Payable Dec. 31, 2020 Cash 64,000 Dec. 31, 2021 Interest Expense Discount on Bonds Payable Cash 64,000