On January 1, the first day of its fiscal year, Ebert Company issued $50,000,000 of 10-year, 7% bonds to finance its operations, Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 9%, resulting in Ebert Company receiving cash of $43,495,895. The company uses the interest method. Required: a. Journalize the entries to record the following transactions. 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. Round your answers to nearest dollar. 1. Sale of the bonds. 2. First semiannual interest payment, including amortization of discount. 3. Second semiannual interest payment, including amortization of discount. b. Compute the amount of the bond interest expense for the first year. c. Explain why the company was able to issue the bonds for only $43,495,895 rather than for the face amount of $50,000,000.