Johnson Company sold for $$59,000$ a $$119,400,2-$year zero coupon bond on January $1,2024.$ The bond matures on December $31,2025.$ Prepare the entry to record the issuance of the bond. If an amount box does not require an entry, leave it blank.

$2024$ Jan. $1$

Cash

Discount on Bonds Payable

Bonds Payable

Record issuance of bonds at discount

$1.$ When bonds are issued, any premium or discount is recorded in a separate valuation account.

$2.$ Prepare the adjusting entry to recognize $2024$ interest expense. If an amount box does not require an entry, leave it blank.

$2024$ Dec. $31$

Interest Expense

Discount on Bonds Payable

Record interest expense

$3.$ Prepare the entry to recognize the $2025$ interest expense and the repayment of the bond on December $31,2025.$ If an amount box does not require an entry, leave it blank.

$2025$ Dec. $31$

Interest Expense

Discount on Bonds Payable

$2025$ Dec. $31$

Bonds Payable

Cash