Instructions On the first day o its fiscal year, Ebert ompany issued S53 500 000 o 10 year, 7% bonds nance its operations. terest s payable semiannual (effective interest rate of 8%, resulting in Ebert receiving cash of $49,864,758. The company uses the interest method. The bonds were sue at a market Required: a. Journalize the entries to record the following transactions. Refer to the Chart of Accounts for exact wording of account titles. 1. Sale of the bonds 2. First semiannual interest payment, including amortization of discount. Round to the nearest dollar. 3. Second semiannual interest payment, including amortization of discount. Round to the nearest dollar. b. Compute the amount of the bond interest expense for the first year. c. Explain why the company was able to issue the bonds for only $49,864,758 rather than for the face amount of $53,500,000