Chapter 14 Long-Term Liabilities: Bonds and No premium by straight-line method of five-year, 10% bonds at a market (effec- 416,500. Interest is payable semiannually EX 14-7 Entries for issuing bonds and amortizing premium by straight McCool Corporation wholesales repair products to equipment manufacture 2010, McCool Corporation issued $30,000,000 of five-year, 10% bonds at a tive) interest rate of 8%, receiving cash of $32,446,500. Interest is payable on April 1 and October 1. Journalize the entries to record the following: a. Sale of bonds on April 1, 2012. b. First interest payment on October 1, 2012, and amortization of bond premium months, using the straight-line method. (Round to the nearest dollar.) c. Explain why the company was able to issue the bonds for $32,446,500 rather than for the face amount of $30,000,000