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Entries for tssuing Bonds and Amertizing Discount by Straight-Line Methed On the first day of its fiscal year, Jacinto Company issued $23,300,000 of five-year, 9%

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Entries for tssuing Bonds and Amertizing Discount by Straight-Line Methed On the first day of its fiscal year, Jacinto Company issued $23,300,000 of five-year, 9% 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 11\%, resulting in Jacinto Company receiving cash of $21,543,724. a. Journalze 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. 2. 3. 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 $21,543,724 rather than for the foce amount of $23,300,000 ? The market rate of interest is the contract rate of interest

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