Pina Corporation issued $\backslash (\backslash$$ $918,000,9\backslash \%,10\backslash )-$year bonds on January $1,2022,$ for $\backslash (\backslash$$ $860,820\backslash ).$ This price resulted in an effective$-$interest rate of $\backslash (10\backslash \%\backslash )$ on the bonds. Interest is payable annually on January $1.$ Pina uses the effective$-$interest method to amortize bond premium or discount.

$($a$)$

$-$ Your answer is partially correct.

Prepare the journal entry to record the issuance of the bonds. $($List debit entry before credit entry. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amount in the relevant debit OR credit box. Entering zero in ALL boxes will result in the question being marked incorrect. Credit account titles are automatically indented when the amount is entered. Do not indent manually.$)$

Date Account Titles and Explanation

Debit

Credit

Jan. $1$

Cash

Discount on Bonds Payable