Sandhill Co. issues $4.1 million, 20-year, 8% bonds at 97, with interest payable on December 31. The straight-line method is used to amortize bond discount.

(a)

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Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1	enter an account title for the journal entry on January 1enter an account title for the journal entry on January 1	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account title for the journal entry on January 1enter an account title for the journal entry on January 1	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account title for the journal entry on January 1enter an account title for the journal entry on January 1	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount

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(b)

Prepare the journal entry to record interest expense and bond discount amortization on December 31, 2022, assuming no previous accrual of interest. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)