On 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 receiving cash of $43,495,895 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 blank Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash Cash Cash Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableDiscount on Bonds Payable Discount on Bonds Payable Discount on Bonds Payable Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableBonds Payable Bonds Payable Bonds Payable 2 First semiannual interest payment, including amortization of discount Round to the nearest dollar If an amount box does not require an entry, leave it blank blank Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable Select Select Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable Select Select Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds Payable Select Select 3 Second semiannual interest payment, including amortization of discount Round to the nearest dollar If an amount box does not require an entry, leave it blank blank Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable Select Select Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable Select Select Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds Payable Select Select b Compute the amount of the bond interest expense for the first year Round to the nearest dollar Annual interest paid Discount amortized Interest expense for first year

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On 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

On 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 receiving cash of $43,495,895. 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.

blank	Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash	Cash	Cash
	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableDiscount on Bonds Payable	Discount on Bonds Payable	Discount on Bonds Payable
	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds PayableBonds Payable	Bonds Payable	Bonds Payable

2. First semiannual interest payment, including amortization of discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

blank	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -

3. Second semiannual interest payment, including amortization of discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

blank	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Accounts PayableBonds PayableCashInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -