nstructions

On January $1,$ the first day of its fiscal year, Jacinto Company issued $$24,200,000$ of five$-$year, $11\%$ bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market $($effective$)$ interest rate of $13\%,$ resulting in Jacinto Company receiving cash of $$22,460,399.$

Required:

a$.$ Journalize the entries to record the following $($refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.$)$:

$1.$ Issuance of the bonds.

$2.$ First semiannual interest payment. The bond discount amortization, using the straight$-$line method, is combined with the semiannual interest payment. $($Round your answer to the nearest dollar.$)$

$3.$ Second semiannual interest payment. The bond discount amortization, using the straight$-$line method, is combined with the semiannual interest payment. $($Round your answer to the nearest dollar.$)$

$*$ Determine the amount of the bond interest expense for the first year.

$*$ Explain why the company was able to issue the bonds for only $$22,460,399$ rather than for the face amount of $$24,200,000.$