Current Attempt in Progress Pina Colada Company issued $380,000,8%, 10-year bonds on January 1, 2022, for $406,690. This price resulted in an effective- interest rate of 7% on the bonds. Interest is payable annually on January 1. Pina Colada uses the effective-interest method to amortize bond premium or discount. (a) Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Jan. 1, 2022 Cash Bonds Payable Premium on Bonds Payable Debit 406690 Credit 380000 26690