Amortize Discount by Interest Method

On the first day of its fiscal year, Ebert Company issued $$28,000,000$ of $5-$year, $10\%$ bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market $($effective$)$ interest rate of $11\%,$ resulting in Ebert Company receiving cash of $$26,944,722.$ The company uses the interest method.

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

Sale of the bonds. Round amounts to the nearest dollar. For a compound transaction, 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. For a compound transaction, if an amount box does not require an entry, leave it blank.

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