Example: X Company issued bonds with a face value of $400,000 at 96 on January 1,2019. They had a 20-year term and an 8% annual interest rate. Interest was payable on December 31 of each year. a. Prepare the journal entry to record the bond issuance. b. Prepare the journal entry to record the interest expense at December 31, 2019. c. Calculate the carrying value of the bonds at 12/31/19. If the market rate is less than the stated rate, bonds are sold at a What is the advantage of debt financing over equity financing