Cornerstone Exercise 9-32 (Algorithmic) Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $550,000 in 9% bonds (payable on December 31, 2029) on January 1, 2020, for $489,500. Interest is paid on June 30 and December 31. The market rate of interest is 12%. Required: Prepare the journal entries for December 31, 2020 and 2021. Round amounts to the nearest whole dollar. Dec. 31, 2020 Interest Expense 30,800 x Discount on Bonds Payable 6,050 X Cash 24,750 Dec. 31, 2021 Interest Expense 30,800 Discount on Bonds Payable 6,050 X Cash 24,750