Entries for Issuing Bonds and Amortizing Discount by straight Line Method On the last day of its fiscal year, Jacinto Company issued $18,000,000 of five year, bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective interest rate of 996, resulting in Jacinto company receiving cash of $17.576,030 a. Journalize the entries to record the following 1. Isance of the bonds 2. ist semiannual interest payment. The bond discount amortization is combined with the manual interest payment Second semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment If an amount box does not require an entry leave it blank Round your answers to the nearest dollar. 1 Cash v 17.576,0307 Discount on Bonds Payable 723970 Bonds Payable 1400,000 V 2. Interest Expense Discount on Bonds Payable 732,000 Interest Expense Discount on Bond Payable Cash 732000 b. Determine the amount of the bond interest expense for the first year Round your answer to the nearest dollar. c. Why was the company able to issue the bonds for only $17,576,030 rather than for the face amount of $18,300,000? The market rate of interest is greater than the contract rate of interest