On January 1, 2020, Solomon Crafts issued 60,000 8-year bonds with $1,000 face value. External markets value the bonds at $630,000 more than face value. The stated rate of interest on Solomon's bonds is 5%, and interest is paid annually on December 31.
Required:
Prepare the necessary journal entry on December 31, 2021, assuming the straight-line method is followed.