Sarasota Corporation issued $440,000, 7%, 20-year bonds on January 1, 2022, for $396,801. This price resulted in an effective- interest 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. (a1) Your answer is partially correct. Prepare the schedule using effective-interest method to amortize bond premium or discount of Sarasota. (Round answers to 0 decimal places, e.g. 5,275.) Interest Expense to Be Recorded Discount Amortization Unamortized Discount Bond Carrying Value $ $ 39272 360728 28858 858 38414 361586 28927 927 37487 362513 Novak Corporation issued $400,000, 7%, 20-year bonds on January 1, 2022, for $360,728. This price resulted in an effective-interest rate of 8% on the bonds. Interest is payable annually on January 1. Novak uses the effective-interest method to amortize bond premium or discount. Your answer is partially correct. Prepare the schedule using effective-interest method to amortize bond premium or discount of Novak. (Round answers to 0 decimal places, e.g. 5,275.) Interest Periods Interest to Be Paid Interest Expense to Be Recorded Discount Amortization Unamortized Discount Bond Carrying Value Issue date $ $ $ 360728 1 28000 2 28000 e Textbook and Media List of Accounts Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2022 Cash 360728 Discount on Bonds Payable 39272 Bonds Payable 400000 X Your answer is incorrect. Prepare the journal entry to record the accrual of interest and the discount amortization on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2022 e Textbook and Media List of Accounts X Your answer is incorrect. Prepare the journal entry to record the payment of interest on January 1, 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2023