Amortize nirernium by interest method Shunda Corporation wholesales parts to appliance manufacturers, On lanuery 1 , Shunda issued $20,000,000 of 5 year, 10% bonds at a market (effective) interest nate of 89. receuving cash of $21,622,179. Interest is payable semannually. Shunda's fiscal year begins on January 1. The company uses the interest method. a. Journalize the entries to record the following: 1. Sole of the bonds. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. c. Explain why the company was able to issue the bonds for $21,622,179 rather than for the face amount of $20,000,000. The bonds sell for more than their face amount because the market rate of interest is the contract rate of interest. Investors willing to pay more for bonds that pay a higher rate of interest (contract rate) than the rate they could earn on similar bonds (market rate)