Cornerstone Exercise 9-32 (Algorithmic) Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $850,000 in 4% bonds (payable on December 31, 2029) on January 1, 2020, for $765,000. Interest is paid on June 30 and December 31. The market rate of interest is 8%. Required: Prepare the journal entries for December 31, 2020 and 2021. Round amounts to the nearest whole dollar. Dec. 31, 2020 Interest Expense 30,600 X Discount on Bonds Payable 13,600 X Cash 17,000 Dec. 31, 2021 Interest Expense 31,144 Discount on Bonds Payable 14,144 X Cash 17,000