On January 1, the first day of the fiscal year pretenders company issued $24,200 of five years, 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 pretender company receiving cash of $22,460,399

A. Journalize the entries to record the following

1. Issuance of the bond

2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment

3. Second semiannual interest. the bond discount is combined with the semiannual interest payment.

B. Determine the amount of the bond interest expense for the first year.

C. Explain why the company was able to issue bonds for only $22,460,399 rather than for the face amount of $24,200,00