Amortize discount by interest method Instructions Chart of Accounts Journal Additional Question Final Question Instructions On January 1, the first day of its fiscal year, Ebert Company issued $12,500,000 of 10-year, 9% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Ebert Company receiving cash of $11,006,214. The company uses the interest method Journal A. Journalize the entries to record the transactions. Refer to the Chart of Accou JOURNAL Required DATE DESCRIPTION A. Journalize the entries to record the following transactions. Refer to the Chart of Accounts for exact wording of account titles. 1. Sale of the bonds. 2. First semiannual interest payment, including amortization of discount. Round to the nearest dollar. 3. Second semiannual interest payment, including amortization of discount. Round to the nearest dollar. B. Compute the amount of the bond interest expense for the first year. C. Explain why the company was able to issue the bonds for only $11,006,214 rather than for the face amount of $12,500,000 Instructions Additional Question On January 1, the first day of its fiscal year, Ebert Company issued $12,500,000 of 10-year, 9% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Ebert Company receiving cash of S11 ,006,214. The company uses the interest method B. Compute the amount of the bond interest expense for the first year. Annual interest paid Discount amortized Interest expense for first year Required A. Journalize the entries to record the following transactions. Refer to the Chart of Accounts for exact wording of account titles. 1. Sale of the bonds. 2. First semiannual interest payment, including amortization of discount. Round to the nearest dollar. 3. Second semiannual interest payment, including amortization of discount. Round to the nearest dollar. B. Compute the amount of the bond interest expense for the first year C. Explain why the company was able to issue the bonds for only $11,006,214 rather than for the face amount of $12,500,000