please solve

Amortize discount by interest method Instructions Chart of Accounts Genoral Joumal Additional Question Final Question Chart of Accounts CHART OF ACCOUNTS Ebert Company General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtul Accounts 126 Interest Recelvable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 142 Store Supplies 151 Prepaid Insurance 191 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Dopreclation-Office Equipment REVENUE 410 Sales 610 Interest Revenue 611 Gain on Redemption of Bonds EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 521 Sales Salaries Expense 522 Office Salaries Exponso 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 534 Seling Expenses 535 Rent Expense 536 Insurance Expense On the trst day of its fiscal year, Eben Company issued $12,500,000 of 10 -year, 7% bends to finance is operations. Interest is payable semiannually. The bends were issued at a markat (effective) interest rate of 95 , resulting in Ebert receiving cash of $10.873,974. The compary uses the interest method. Pequined! a. Joumasue the entries to record the following transactions. 1. Sale of the bonds on January t. 2. First semiannual interest payment an June 30, inctuding amorkation of dscount 3. Second semiarnual interest payment on December 31 , inctuding amortization of dscount. b. Compute the amount of the bond interest expense for the first year. c. Explain why the company was able to issue the bonds for ony $10,873,974 rather than for the face amount of $12,500,000. c. Explair why the company was able to issue the bonds for only $10,873,974 famer than for the face anoune of \$12,500,000. The bonds sel for less than their tace amount because the meiket rate of interest is the contract rabe of interent. Investors willing so pay she tut tace amount for bonds that pay a lower contract rate of inteiest than the race they could earn on simlar bonds (market rate). b. Compute the amount of the bond interest expense for the first year. Enter amounts as a positive number. a. Joumalibe the entries to record the transections. Amortize discount by interest method Instructions Chart of Accounts General Journal Additional Question Final Question Chart of Accounts LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable 536 Insurance Expense 537 Office Supplies Expense 538 Store Supplies Expense 541 Bad Debt Expense 561 Depreciation Expense-Store Equipment 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense 711 Loss on Redemption of Bonds 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 Check My Work