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TO On January 1, the first day of its fiscal year, Jacinto Company issued $18.400,000 of five-year, 12% bonds to finance its operations of producing

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TO On January 1, the first day of its fiscal year, Jacinto Company issued $18.400,000 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 $17, 107.672 Required: a Journalize the entries to record the following (refer to the chart or accounts for exact wording of the account # CHOW Journals do nor use lines for journal excolanations. Every ine on a journal page is used for det or credit entries. Now journals will automatically indert a credit entry when a credit amount is entered) 1. Issuance of the bonds 2. First semiannual interest payment. The bond discount amortization using the straight line method is combined with the comannuairerent payment (Round your answer to the nearest dollar 3. Second semiannuel interest payment. The bond discount amoncation using straight on method is combined with the demand Required: a Journalize the entries to record the following (refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debitor credit entries. CNOWjournals will automatically indenta credit entry when a credit amount is entered) 1 ssuance of the bonds 2. First semiannual interest payment. The bond discount amortization using the straight-line method is combined with the semiannuaf interest payment (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount amortization using the straight-line method is combined with the semiannual interest payment (Round your answer to the nearest dollar) b Determine the amount of the bond interest expense for the first year Explain why the company was able to issue the bonds for only $17 107,672 rather than for the face amount of 518 400,000. Share Beach JOURNAL Score: 73/112 ACCOUNTING EQUAT DATE DESCRIPTION POST RER DEEN CREDIT ASSETS LIABILITIES Jan. 1 Cash 3 Discount on Bonds Payable Bonds Payable Jun. 30 interest Expense Discount on Bonds Payable Cash Dec. 31 Interest Expense

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