Blossom Corporation sold $$2,120,000,5\%,5-$ year bonds on January $1,2027.$ The bonds were dated January $1,2027,$ and pay interest each January $1.$ Blossom Corporation uses the straight $-$ line method to amortize bond premium or discount.

$($B$)$

Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for $2027,$ assuming that the bonds sold at $98.($Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

Credit

Cash

$2,077,600$

Bonds Payable

$2,077,600$

$$

$2,120,000$

Interest Expense

$106,000$