Debt Issued at a Discount (Straight Line)}

On December 31, 2018, Dubois Company issued \(\$ 350,000\), five-year bonds for \(\$ 320,000\). The stated rate of interest was \(7 \%\) and interest is paid annually on December 31 .

Required:
Prepare the necessary journal entry on December 31, 2020, assuming the straight-line method is followed.
\section*{OBJECTIVE 4 Cornerstone Exercise