Presented below is the partial bond discount amortization schedule for Sandhill Corp. Sandhill uses the effective-interest method of amortization.

Interest Periods	Interest to Be Paid	Interest Expense to Be Recorded	Discount Amortization	Unamortized Discount	Bond Carrying Value
1	$135,000	$144,209	$9,209	$115,827 106,618	$2,884,173 2,893,382
2	$135,000	144,669	9,669	96,949	2,903,051

(a)Prepare the journal entry to record the payment of interest and the discount amortization at the end of period 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit