Blossom Company issues $4.30 million, 10-year, 7% bonds at 96, with interest payable on December 31. The straight-line method is used to amortize bond discount.

(b) Your answer is partially correct. Try again. Prepare the journal entry to record interest expense and bond discount amortization on December 31, 2017, assuming no previous accrual of interest. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Interest Expense 305200 Cash 305200 Discount on Bonds Pay 17440