$$15,100,230.$

a$.$ Journalize the entries to record the following:

Issuance of the bonds.

First semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment.

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.

$1.$

$2.$

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 $$15,100,230$ rather than for the face amount of $$16,300,000?$

The market rate of interest is the contract rate of interest.

Profitability Ratios

The following selected data were taken from the finandal statements of Vidahill Inc. for December $31,2017,2016,$ and $20$Y$5$:

Return on total assets

Return on stockholders' equity

Retum on common stockholders' equity

b$.$ The profitability ratios indicate that the company's profitability has Because the return on common stockholders' equity the retum on total assets in both years, there is leverage from the use of debt.