Chapter 12 (30 points) Ex 12-7 (p. 574) (Adapted) Lerner Corporation wholesales repair products to equipment manufacturers. On April 1, 2016, Lerner issued $100,000 of five-year, 10% bonds at a market (effective) interest rate of 8%, receiving cash of $108,110.88. Interest is payable semiannually on April 1 and October 1. Journalize the entries to record the following: a) Issuance of bonds on April 1, 2016. b) First interest payment on October 1, 2016 and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar). c) Explain why the company was able to issue the bonds for $108,110.88 rather than for the face amount of $100,000