Cornerstone Exercise 9-32 (Algorithmic) Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $800,000 in 4% bonds (payable on December 31, 2029) on January 1, 2020, for $720,00 market rate of interest is 5%. Required: Prepare the journal entries for December 31, 2020 and 2021. Round amounts to the nearest whole dollar. Dec 31, 2020 Interest Expense 20,000 X Discount on Bonds Payable 4,000 X Cash 16,000 Dec. 31. 2021 Interest Expense 20,000 X Discount on Bonds Payable 4,000 X Cash 16,000