Nashville Company issued a $200,000, three-year, 7% bonds on January 1, 2025 for $194,845, with interest payable annually. The market rate at issuance was 8%. What journal entry should Nashville Company record on December 31, 2025? Round your answer to the nearest whole dollar. Answer should be expressed as: DR (ACCOUNT NAME) $X,XXX CR (ACCOUNT NAME) $X,XXX

Nashville Company issued a $200,000, three-year, 7% bonds on January 1, 2025 for $194,845. with interest payable annually. The market rate at issuance was 8%. What journal entry should Nashville Company record on December 31, 2025? Round your answer to the nearest whole dollar. Answer should be expressed as: DR (ACCOUNT NAME) $X.XXX CR (ACCOUNT NAME) $X,XXX