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.

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. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2022	enter an account title for the journal entry on January 1, 2022	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1, 2022	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1, 2022	enter a debit amount	enter a credit amount

Prepare the journal entry to record the accrual of interest and the discount amortization on December 31, 2022. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2022	enter an account title for the journal entry on December 31, 2022	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31, 2022	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31, 2022	enter a debit amount	enter a credit amount

Prepare the journal entry to record the payment of interest on January 1, 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2023	enter an account title for the journal entry on January 1, 2023	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1, 2023	enter a debit amount	enter a credit amount