On the first day of its fiscal year, Jacinto Company issued $28,900,000 of five year, 12 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 14 , resulting in Jacinto Company receiving cash of $26,870,203 a Journalize the entries to record the following 1 Issuance of the bonds 2 First semiannual interest payment The bond discount amortization is combined with the semiannual interest payment 3 Second semiannual interest payment The bond discount amortization is combined with the semiannual interest payment If an amount box does not require an entry, leave it blank Round your answers to the nearest dollar 1 2 3 b Determine the amount of the bond interest expense for the first year Round your answer to the nearest dollar c Why was the company able to issue the bonds for only $26,870,203 rather than for the face amount of $28,900,000 The market rate of interest is the contract rate of interest On the first day of its fiscal year, Jacinto Company issued $28,900,000 of five year, 12 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 14 , resulting in Jacinto Company receiving cash of $26,870,203 a Journalize the entries to record the following 1 Issuance of the bonds 2 First semiannual interest payment The bond discount amortization is combined with the semiannual interest payment 3 Second semiannual interest payment The bond discount amortization is combined with the semiannual interest payment If an amount box does not require an entry, leave it blank Round your answers to the nearest dollar b Determine the amount of the bond interest expense for the first year Round your answer to the nearest dollar c Why was the company able to issue the bonds for only $26,870,203 rather than for the face amount of $28,900,000 The market rate of interest is the contract rate of interest

Question

On the first day of its fiscal year, Jacinto Company issued $28,900,000 of five year, 12  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 14 , resulting in Jacinto Company receiving cash of $26,870,203  a  Journalize the entries to record the following  1  Issuance of the bonds  2  First semiannual interest payment  The bond discount amortization is combined with the semiannual interest payment  3  Second semiannual interest payment  The bond discount amortization is combined with the semiannual interest payment  If an amount box does not require an entry, leave it blank  Round your answers to the nearest dollar  1  2  3  b  Determine the amount of the bond interest expense for the first year  Round your answer to the nearest dollar  c  Why was the company able to issue the bonds for only $26,870,203 rather than for the face amount of $28,900,000  The market rate of interest is the contract rate of interest  On the first day of its fiscal year, Jacinto Company issued $28,900,000 of five year, 12  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 14 , resulting in Jacinto Company receiving cash of $26,870,203  a  Journalize the entries to record the following  1  Issuance of the bonds  2  First semiannual interest payment  The bond discount amortization is combined with the semiannual interest payment  3  Second semiannual interest payment  The bond discount amortization is combined with the semiannual interest payment  If an amount box does not require an entry, leave it blank  Round your answers to the nearest dollar  b  Determine the amount of the bond interest expense for the first year  Round your answer to the nearest dollar  c  Why was the company able to issue the bonds for only $26,870,203 rather than for the face amount of $28,900,000   The market rate of interest is the contract rate of interest

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- On the first day of its fiscal year, Jacinto Company issued $28,900,000 of five-year, 12% bonds to finance its operations of producing and selling

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