On the first day of its fiscal year, Robbins Company issued $25,400,000 of five-year, 7% 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 9%, resulting in Robbins Company receiving cash of $23,390,230. a. Journalize the entries to record the following: Issuance of the bonds. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar. 1. Cash 23,390,230 Discount on Bonds Payable 2,009,770 Bonds Payable 25,400,000 2. Interest Expense Discount on Bonds Payable Cash 889,000 3. Interest Expense Discount on Bonds Payable Cash 889,000 Feedback b. Determine the amount of the bond interest expense for the first year. $ c. Why was the company able to issue the bonds for only $23,390,230 rather than for the face amount of $25,400,000? The market rate of interest is greater than the contract rate of interest. Feedback