On the first day of its fiscal year, Ebert Company issued $82,500,000 of 10 -year, 7 bernds to finance its operations. Interest is payable semiannually. The bends were issued at a market (eflective) interest rate of 97 , resulting in Ebert recehing cash of $71,766,227. The company uses the interest mechod: Required: a. Journaike the entries to record the following transactions 1. Sale of the bonds on January 1 2. First semionnual interest payment on June 30, including amortization of aiscount 9. Second semlannual interest payment on December 31 , incivding amortization of discount. b. Compute the amount of the bond interest expense for the first yoar. c. Explain why the company was able to issue the bonds for only 371,768,227 rather than for the face amount of $82,600,000 CHART OF ACCOUNTS Ebert Company General Ledger REVENUE ASSETS 410 Sales 110 Cash 610 Interest Revenue 111 Petty Cash 121 Accounts Receivable 611 Gain on Redemption of Bonds 122 Allowance for Doubtful Accounts EXPENSES 126 Interest Receivable 510 Cost of Merchandise Sold 127 Notes Receivable 515 Credit Card Expense 131 Merchandise Inventory 516 Cash Short and Over 141 Otfice Supplies 521 Sales Salaries Expense 142 Store Supplies 522 Office Salaries Expense 151 Prepaid insurance 531 Advertising Expense 191 Land 532 Delivery Expense 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 533 Repairs Expense 534 Selling Expenses 194 Office Equipment 195 Accumulated Depreciation-Office Equipment 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense LIABILITIES 538 Store Supplies Expense 210 Accounts Payable 541 Bad Debt Expense 221 Salaries Payable 561 Depreciation Expense-Store Equipment 231 Sales Tax Payable 562 Depreciation Expense-Office Equipment 232 Interest Payable 192 Store Equipment 532 Delivery Expense 193 Accumulated Depreciation-Store Equipment 533 Repairs Expense 194 Office Equipment 534 Selling Expenses 195 Accumulated Depreciation-Office Equipment 535 Rent Expense 536 Insurance Expense LIABILITIES 537 Office Supplies Expense 210 Accounts Payable 538 Store Supplies Expense 221 Salaries Payable 541 Bad Debt Expense 231 Sales Tax Payable 561 Depreciation Expense-Store Equipment 232 Interest Payable 562 Depreciation Expense-Office Equipment 241 Notes Payable 590 Miscellaneous Expense 251 Bonds Payable 710 Interest Expense 252 Discount on Bonds Payable 711 Loss on Redemption of Bonds 253 Premium on Bonds Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends a. Journalize the entries to record the fransactions