Cornerstone Exercise 9-28 (Algorithmic) Debt Issued at a Discount (Straight Line) On January 1, 2020, Drew Company Rd $347.000. var bonds for $320,000. The states rate of interest was 7% and interest is paid annually on December 31. Required: Prepare the necessary Journal entry on December 31, 2021, assuming the straight-line method is followed 2011 Dec. 31 Interest Expense Discount on Bonds Payable 100 Cash (Record interest expense)