of Bonds Payable X + Eignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator-&inprogress false eBook Amortize discount by interest method Chart of Accounts Journal Additional Question Final Question Instructions On the first day of its fiscal year Ebert Company issued $12.500,000 of 10 years bonds to finance ts operations Interest is payable semanuely The bonds were issued at a market felve) interest rate of resulting in Ebert receiving cash of 510 873,974 The company uses the interest method Required: a Journalue the entries to record the following transactions Refer to the Chart of Accounts for exact wording of accounts 1. Sale of the bonds on January 1 2. Fasemiannual interest payment on June 30, including amortization of discount Round to the rest doar 3 Second semiannual interest payment on December 31, including amostration of discount Round to the nearest dollar b. Compute the amount of the bond interest expense for the first year Explain why the company was able to issue the bonds for only $10 873 974 rather than for the face amount of 512.500.000 The My Worm Check My Worker Pred Non All work saved Chant of Accounts Journal Additional Question Final Question Instructions Chart of Accounts Or int CHART OF ACCOUNTS Ebert Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 610 Interest Revenue 611 Gain on Redemption of Bonds EXPENSES Instructions Chart of Accounts Journal int On a Joumalize the entries to record the transactions Refer to the Chart of Accounts for exact wording of count Round to the JOURNAL MCCOUNTING DATE DESCRIPTION POST: REF DET caror Check My Work 5 more Check My Work uses remaining All work saved . Tour mentSessionlocator Binprogress=false eBook Instructions Chart of Accounts Or Journal inte 1 2 1 7 Chuck My Work more Check My Work uses remaining Em All work saved Session locator progress=false eBook Amortize discount by interest method Chart of Accounts Journal Additional Question Final Questions Instructions Or Chart of Accounts Journal Additional Question inti b Compute the amount of the bond interest expense for the first year Enter amounts as a positive number Annual interest paid S NOCE Discount amortized Interest expense for first year $ 1 2 3 CBOOK Amortize discount by interest method . Journal Additional Question Final Question Instructions Chart of Accounts Or Journal inti Additional Question Final Question c. Explain why the company was able to issue the bonds for only $10.873,974 rather than for the face amount of $12 500.000 The bonds sell for less than their face amount because the market rate of interest is the contract rate of interest Investors bonds that pay a lower contract rate of interest than the rate they could earn on similar bonds market rate) ing to pay the face Previous Check My Work 5 more Check My Work uses remaining Email structor Save and Submit All work saved 80F