Sarasota Corporation issued $$440,000,7\%,20-$year bonds on January $1,2025,$ for $$396,801.$ This price resulted in an effectiveinterest rate of $8\%$ on the bonds. Interest is payable annually on January $1.$ Sarasota uses the effective$-$interest method to amortize bond premium or discount.

Prepare the journal entry to record the issuance of the bonds. $($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Round answers to $0$ decimal places, e$.$g$.5,275.)$

List of Accounts

Prepare the journal entry to record the accrual of interest and the discount amortization on December $31,2025.($List all debit entries before credit entries. Credit account titles are automatically indented when 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. Round answers to $0$ decimal places, e$.$g$.5,275.$j$)$

Date

Account Titles and Explanation

Debit

Credit