On January 1, the first day of its fiscal year, Jacinto Company issued $18,400,000 of five-year, 8% 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 9%, resulting in Jacinto Company receiving cash of $17.672,074 Required: a. Journalize the entries to record the following (refer to the chart of accounts for the exact wording of the account dides. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debitor credit entries. CNOW journals will automatically indenta credit entry when a credit amount is entered) 1. Issuance of the bonds 2. Rrst 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 amoration using the straight-line method, is combined with the semiannual interest payment (Round your answer to the nearest dollar) b. Determine the amount of the bond interest expense for the arst year c. Explain why the company was able to issue me bonds for only $17,672,074 rather than for the face amount of $18,400,000 book Show I HOW Journal a Journalte the entries to record the ansactions Refer to the chair of accounts for the exact wording of the accounts. CNOWjournals do not use lines for oumal explanations. Every line on a journal page is used for debitor credir entries CNOW Journals will automatically indenta credit entry when a credit amount is entered Round your answer to the nearest dollar. Question not attempted PAGE 10 JOURNAL Score: 0/112 ACCOUNTING EQUATION CREDIT POST. REF GATE DOT ASSETS DESCRIPTION EDUTY LADUTIES Previous Next Check My Work 35 11:26 SAMSUNG cengagenow.com/takeAssignment/takeAssignment Main.do?invoker=&takeAssignmentSession.ocator-&inprogress-false Be Final Questions AL b. Demine the amount of the band inserest experise for the year -AL $ -AL Points 071 AL Feedback Check My Work Add total interest expense for the year AL AL. c. Explain why the company was able to issue the bonds for only $17.672,074 rather than for the face amount of $18.400,000 willing to pay The bonds sel for less than their face amount because the market rate of interestis the contract rate of interest investors the full face amount for bonds that pay a lower contract rate of interest than the rate they could eam on similar bonds market rate) Points 012 Check My Work Previous Next > SAMSUNG