Sunland Company issues $4.70 million, 10-year, 10% bonds at 95, with interest payable annually on January 1. The straight-line method is used to amortize bond discount.

Prepare the adjusting journal entry to record interest expense and bond discount amortization on December 31, 2020.

I am confused with how to find Interest Expense, Interest Payable, and Discount on Bonds Payable. Please explain the process.

Account Titles	DR	CR
Interest Expense
Interest Payable
Discount on Bonds Payable