a$.$ Journalize the entries to record the following:

Sale of the bonds. Round to the nearest dollar. If an amount box does not require an entry, leave it blank

First semiannual interest payment, including amortization of discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

$$

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Second semiannual interest payment, including amortization of discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

Interest Expense

$$

$$

$$

cash $$

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As the discount or premium is amortized, the carrying amount of the bond changes. As a result, interest expense also changes each period.

b$.$ Compute the amount of the bond interest expense for the first year. Round to the nearest dollar.

Annual interest paid

Discount amortized

Interest expense for first year

Interest expense for first year

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To find the interest expense either add any discount amortized or subtract any premium amortized to cash paid to the bondholders.

c$.$ Explain why the company was able to issue the bonds for only $$16,359,296$ rather than for the face amount of $$17,000,000.$