On january 1, the first day of its fiscal year, pretender company issued $18,500,000 of five-year, 10% bonds to finance its operations of producing and selling home improvement products. interest is payable semiannually. the bonds were issued at a market (effective) interest rate of 12%, resulting in pretender company receiving cash of $17,138,298.required: a. journalize the entries to record the following (refer to the chart of accounts for exact wording of account titles): 1. issuance of the bonds.2. first semiannual interest payment. the bond discount is combined with the semiannual interest payment. (round your answer to the nearest dollar.)3. second semiannual interest payment. the bond discount is combined with the semiannual interest payment. (round your answer to the nearest dollar.)b. determine the amount of the bond interest expense for the first year. c. explain why the company was able to issue the bonds for only $17,138,298 rather than for the face amount of $18,500,000.chart of accountspretender companygeneral ledgerassets110 cash111 petty cash121 accounts receivable122 allowance for doubtful accounts126 interest receivable127 notes receivable131 merchandise inventory141 office supplies142 store supplies151 prepaid insurance191 land192 store equipment193 accumulated depreciation-store equipment194 office equipment195 accumulated depreciation-office equipmentliabilities210 accounts payable221 salaries payable231 sales tax payable232 interest payable241 notes payable251 bonds payable252 discount on bonds payable253 premium on bonds payableequity311 common stock312 paid-in capital in excess of par-common stock315 treasury stock321 preferred stock322 paid-in capital in excess of par-preferred stock331 paid-in capital from sale of treasury stock340 retained earnings351 cash dividends352 stock dividends390 income summary revenue410 sales610 interest revenue611 gain on redemption of bondsexpenses510 cost of merchandise sold515 credit card expense516 cash short and over521 sales salaries expense522 office salaries expense531 advertising expense532 delivery expense533 repairs expense534 selling expenses535 rent expense536 insurance expense537 office supplies expense538 store supplies expense541 bad debt expense561 depreciation expense-store equipment562 depreciation expense-office equipment590 miscellaneous expense710 interest expense711 loss on redemption of bonds