Debt Issued at a Discount (Straight Line) On January 1, 2024, Drew Company issued 5-year bonds with a face value of $35,000,000 for $32,000,000. The stated rate of interest was 7% and interest is paid annually on December 31. Required: Prepare the necessary journal entry on December 31 at the end of the first year, assuming the straight-line method is followed. If an amount box does not require an entry, leave it blank. 2024 Dec. 31 88

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A: Difference between income and expenditure account and receipt and payment account:

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