Carla Vista Electric sold $$3,950,000,10\%,10-$year bonds on January $1,2022.$ The bonds were dated January $1$ and pay interest annually on January $1.$ Carla Vista Electric uses the straight$-$line method to amortize bond premium or discount. The bonds were sold at $103.$

$($a$)$

Prepare the journal entry to record the issuance of the bonds on January $1,2022.($Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

Date Account Titles and Explanation

Debit

Credit

Jan. $1,2022$

Discount on Bonds Payable