Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Jacinto Company issued $5,500,000 of six-year, 75bonds to finance its operations of producing and selling home improvement products. Interest is payable semiarinually. The bonds were issued at a market (effective) interest rate of 95, resulting in Jacinto Company receiving cash of $6,194,985 a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. 3. 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 -6,194,985 Discount bond 305,015 payable band payable 2. Interest ex-242,750 Discount bord Cash 6,500,000 15,250.75 221,500 6,500,000X 7%.x6/12=227,500 Interest expense $ Discount bond Pash 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 $6,194,985 rather than for the face amount of $6,500,000? The market rate of interest is, the contract rate of interest.