Cornerstone Exercise 9-32 (Algorithmic) Bonds issued at a Discount (Effective interest) Sicily Corporation issued $900,000 in 4% bonds (payable on December 31, 2029) on January 1, 2020, for $846,000. 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 doilar. 20,700 X Dec. 31, 2020 Interest Expense Discount on Bonds Payable Cash 2,700 X 18,000 20,700 x Dec 31, 2021 Interest Expense Discount on Bonds Payable Cash 2,700 X 18,000 Foto Check My Work The amortization table provides the dollar amounts necessary to complete the journal entry Check My Work 2 more Check My Work uses remaining, Previous Next