On December 1, Somart issues $41,000 of 7 -year, 5% bonds for $39,360. Interest is payable annually on May 1. a. Record the issuance of the bonds on December 1 . (List debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) b. Show how the bonds will be reported if a balance sheet was prepared on the date of issue