Cornerstone Exercise 9-32 (Algorithmic) Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $1,600,000 in 8% bonds (payable on December 31, 2029) on January 1, 2020, for $1,536,000. 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 96,000 Discount on Bonds Payable 32,000 Cash 64,000 Dec. 31, 2021 Interest Expense 96,000 X Discount on Bonds Payable 32,000 X Cash 64,000