Crane Company issues $4,000,000, 10-year, 10% bonds at 95, with interest payable annually on January 1. The straight-line method is used to amortize bond discount. (a) Your answer is correct Prepare the journal entry to record the sale of these bonds on January 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit Jan. 1 Cash 3800000 -Discount on Bonds Payable 200000 Bonds Payable 4000000 Prepare the adjusting journal entry to record interest expense and bond discount amortization on December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Credit Debit Date Account Titles and Explanation Dec. Interest Expense 31 Interest Payable Discount on Bonds Payable