Answer:
Dr cash                   $74,100
Dr discount on bonds payable $10,900
Cr Bonds payable                  $85,000
The interest expense
Dr interest expense         $2,964
Cr discount on bonds payable        $264
Cr cash                           $2,700
Explanation:
From the amortization presented in the question,the present value of the bonds,which is proceeds received from bond issues was $74,100,which implies that the bonds were issued at a discount of $10,900 ($85,000-$74,100).
The entries for the bond issue would a debit of $74,100 to cash while a debit of $10,900 is posted to discount on bonds payable.The credit to bonds payable account would the face value of $85,000
