Answer
Step1:
Jan. 1
Cash - 2,970,00 dollars (Debit)
Discount on bonds payable - 30,000 dollars (Debit)
Bonds payable - 3,000,000 dollars (Credit)
Step2:
Jan.1
Bonds interest expense - 183,000 dollars (Debit)
Discount on bonds payable - 3,000 dollars (Credit)
Bonds interest payable - 180,000 dollars (Credit)
Work Step by Step
Step1: To record the sale of bonds at a discount.
Step2: To record accrued bond interest and amortization of bonds discount.