Amortize Discount by Interest Method On the first day of its fiscal year, Ebert Company issued $17,000,000 of 5-year, 10% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 12%, resulting in Ebert Company receiving cash of $15,748,877. The company uses the interest method. a. Journalize the entries to record the following: .