Wildhorse Company issues $4,500,000, 10-year, 8% bonds at 96, with interest payable annually on January 1. The straight-line method is used to amortize bond discount.

(a)

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 to record the sale of the bonds on January 1	enter a debit amount	enter a credit amount
	enter an account title to record the sale of the bonds on January 1	enter a debit amount	enter a credit amount
	enter an account title to record the sale of the bonds on January 1	enter a debit amount	enter a credit amount

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(b)

Prepare the adjusting journal entry to record interest expense and bond 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	enter an account title for the adjusting entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the adjusting entry on December 31	enter a debit amount	enter a credit amount
	enter an account title for the adjusting entry on December 31	enter a debit amount	enter a credit amount