On the first day of its fiscal year, Ebert Company issued $21,000,000 of 5-year, 12% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 13%, resulting in Ebert receiving cash of $20,245,256. The company uses the interest method a. Journalize the entries to record the following: 1. Sale of the bonds. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Cash 20.245.256 Discount on Bonds Payable 754,744 Bonds Payable 21,000,000 0 0 Feedback Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account 2. First semiannual interest payment, including amortization of discount, Round to the nearest dollar. If an amount oes not require an entry blank Interest Expense 0 Discount on Bonds Payable Cash 1.000