Cullumber Inc. issues $5,000,000, 5-year, 12% bonds at 104, with interest payable annually on January 1. The straight-line method is used to amortize bond premium. (a) X Your answer is incorrect. Prepare the journal entry to record the sale of these 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 Interest Payable Discount on Bonds Payable Interest Payable 5,000,000 104 600,000