2. McCool Corporation wholesales repair products to equipment manufacturers. On April 1, 2010 McCool Corporation issued $30,00,000 of five year 10% bonds at a market (effective) interest rate of 8%,...

Extracted text: 2. McCool Corporation wholesales repair products to equipment manufacturers. On April 1, 2010 McCool Corporation issued $30,00,000 of five year 10% bonds at a market (effective) interest rate of 8%, receiving cash of $32,466,500. Interest is payable semiannually on April 1 and October 1. Journalize the entries to record the following (Amortize premium by straight line method) Sale of bonds on April 1, 2012 First interest payment on Oct. 1, 2012, and amortization of bond premium for six months (round to the nearest dollar) Explain briefly why the company was able to issue bonds for $32,446,500 rather than for the face amount of $30,000,000 a. b. C.