Blue Spruce Corporation issued $440,000, 6%, 20-year bonds on January 1, 2022, for $393,386. This price resulted in an effective- interest rate of 7% on the bonds. Interest is payable annually on January 1. Blue Spruce uses the effective-interest method to amortize bond premium or discount. (a) Your answer is correct. 4 Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 1, Cash 2022 Discount on Bonds Payable Bonds Payable Debit 393386 46614 Credit 440000