Account for Bonds Issued at a Discount 5M Corp. authorized and issued $120,000, 5%, 10-year bonds on January 1. The bonds pay cash interest semiannually on July 1 and January 1 and are issued to yield 7% Effective Interest Method Straight-line Interest Method a. Record the entries on (1) January 1 for the issuance of the bonds, (2) July 1 for the payment of interest, and (3) December 31 for the accrual of interest, assuming that the company amortizes bond discount using the effective interest method. Note: Round your answers to the nearest whole dollar. Date 1. Jan. 1 Account Cash Discount on Bonds Payable Bonds Payable Dr. Cr. 0 0 0 0 0 0 ooo To record bonds sold at a discount. 2. July 1 0 0 0 ooo 0 x 0x 0x To record payment of interest. 3. Dec. 31 ooo 0 0 0 0x 0 0 To record accrual of interest.