Debt Issued at a Discount (Straight Line) On January 1, 2024, Drew Company issued 5-year bonds with a face value of $35,000,000 for $32,000,000. The stated rate of interest was 7% and interest is paid annually on December 31. Required: Prepare the necessary journal entry on December 31 at the end of the first year, assuming the straight-line method is followed. If an amount box does not require an entry, leave it blank 2024 Dec. 31 Interest Expense Discount on Bonds Payable Feedback Cash Check My Work When bonds are issued, any premium or discount is recorded in a separate valuation account.