Amortize Discount by Interest Method On the first day of its fiscal year, Ebert Company issued...

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Amortize Discount by Interest Method On the first day of its fiscal year, Ebert Company issued $18,000,000 of 5-year, 10% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Ebert Company receiving cash of $17,321,607. 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. For a compound transaction, if an amount box does not require an entry, leave it blank. Cash Discount on Bonds Payable Bonds Payable Feedback >> Check My Work 2. First semiannual interest payment, including amortization of discount. Round to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Interest Expense Discount on Bonds Payable Cash 88 Feedback Check My Work 3. Second semiannual interest payment, including amortization of discount. Round to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Interest Expense Discount on Bonds Pavable Cash Feedback Check My Work 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 Amortize Discount by Interest Method On the first day of its fiscal year, Ebert Company issued $18,000,000 of 5-year, 10% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Ebert Company receiving cash of $17,321,607. 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. For a compound transaction, if an amount box does not require an entry, leave it blank. Cash Discount on Bonds Payable Bonds Payable Feedback >> Check My Work 2. First semiannual interest payment, including amortization of discount. Round to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Interest Expense Discount on Bonds Payable Cash 88 Feedback Check My Work 3. Second semiannual interest payment, including amortization of discount. Round to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Interest Expense Discount on Bonds Pavable Cash Feedback Check My Work 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