Amortize Premium by Interest Method Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Year 1, Shunda Corporation issued $22,000,000 of five-year, 9% bonds at a market (effective) interest rate of 7%, receiving cash of $23,829,684. Interest is payable semiannually. Shunda Corporation's fiscal year begins on January 1 . The company uses the interest method. a. Journalize the entries to record the following: 1. 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. 2. First semiannual interest payment, including amortization of premlum. Round to the nearest dollac. For a compound transaction, if an amount box does not require an entry, leave it blank. 3. Second semiannual interest payment, induding amortization of premium. Round to the nearest dollar, For a compound tran saction, if an amount box does not require an entry, leave it blank 3. Second semiannual interest payment, induding amortization of premium. Round to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank: b. Determine the bond interest expense for the first year. Enter amounts as positive numbers. Round amounts to the nearest dollar. c. Explain why the company was able to issue the bonds for $23,829,684 rather than for the face amount of $22,000,000. The bonds sell for more than their face amount because the market rate of interest is the contract rafe of interest. Investor: similar bonds (market rate)