Amortize discount by interest method On the first day of its fiscal year, Ebert Company issued $16,000,000 of 5year,12% bonds to finance its operations. Interest is payable semiannually. The bonds wene issued at a market (effective) interest rate of 13%, resulting in Ebert receiving cash of $15,424,957. The company uses the interest methoid a. Journalize the entries to record the foliowing: 1. Sale of the bonds. Round to the nearest dollar. If an amount bok does not require an entry, leave it blank b. Compute the amount of the bond interest expense for the first year. Round to the nearest dollar. c. Explain why the company was able to issue the bonds for anly $15,424,957 rather than for the face amount of 516,000,000. The bonds seli for iess than their face amount because the market rate of interest a the contract rate of interest. Investois Willing to pay the full face amount for bonds that pay a lower contract rate of interest than the rate they could eam on aimilar bonds (market rate)