During Year 1 and Year 2, Agatha Corporation completed the following transactions relating to its bond issue. The corporations fiscal year is the calendar year. Year 1 January 1 Issued $330,000 of 10-year, 7 percent bonds for $318,000. The annual cash payment for interest is due on December 31. December 31 Recognized interest expense, including the straight-line amortization of the discount, and made the cash payment for interest. December 31 Closed the interest expense account. Year 2