Brief Exercise 10-16 (Part Level Submission) Verlin Company issues $3.85 million, 10-year, 7% bonds at 99, with interest payable on December 31. The straight-line method is used to amortize bond discount. (a) Your answer is correct. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 3811500 Discount on Bonds Payable T 38500 T T Bonds Payable 3850000 SHOW LIST OF ACCOUNTS LINK TO TEXT Attempts: 3 of 3 used