Print Item eBooks Calculator Amortize Discount by Interest Method On the first day of its fiscal year, Ebert Company issued 519,000,000 of 5-year, 9% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 10%, resulting in Ebert receiving cash of $18,266,378. The company uses the interest method. a. Journalize the entries to record the following: 1. Sale of the bonds. Round amounts to the nearest dollar. If an amount box does not require an entry, leave it blank. Cash 1837 731622 Discount on 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 Interest Expense 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 b. Compute the amount of the bond interest expense for the first year. Round amounts to the nearest dollar. Annual interest paid Discount amortized Interest expense for first year Previous Check My Work 4 more Check My Work used remaining Save and bike Submit Assignment for Grading All work saved Calculator Print them Discount on Bondy Bonds Payable 2. First serannual interest payment, duding amortization of Sout. Round to the nearest dollar. If an amount box does not require an entry, leave it blank 3. Second semiannual trestament, including motion of Rund to the rest dollar. If an amount box does not require an entry, leave it bank b. Compute the amount of the bond e n for the around amount to the nearest del Annual interest paid Discount amortized Interest expense for first year c. Explain why the company was able to the bonds for 18.266 378 her than for the face amount of $19.000.000 The bonds sell for less than their face amount because the market rate of interestis the contract rate of interest. Investors willing to pay the full face amount for bonds that pay a lower contract rate of interest than the rate they coud earn on similar bonds market rate). Check My Workmore Check My Workwearing Previous All work saved Save and Submit Assignment for Grading