Sheridan Company issues $3.8 million, 20-year, 5% bonds at 97, with interest payable on December 31. The straight-line method is used to amortize bond discount. (a) Your answer is correct 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 Cash 3.686.000 Discount on Bonds Payable 114,000 Bonds Payable 3.500.000 (b) Your answer is partially correct. 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.) Date Debit Credit Account Titles and Explanation Interest Expense Dec, 31 3,572,000 Discount on Bonds Payable 11,400 3,560,600