3-Chapte On the rst day of fecal year, Chin Company Entries for sung binds and ametizing ont by straight-line method $28,400,000 if ve 10% bonds to finance its operations of producing and sing home improvement products semiannually. The bonds were issued at market (effective) interest rate of 11%, resulting in Chin receiving cash of $27,329,647 a. Jumalize the entries to recard the fatowing 1. Jasuance of the bonds 2. First semiannual interest payment. The bond discount is combined with the seminal 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.) If an amount box does not require an entry, leave it blank Entries Account Debit Credit 2. 11! 111 111 27329647 111 111-111 Sash Discount on Bands Payable Bonds Payable Interest Expense Discount on Bonds Payable Cash Interest Expense Discount on Bonds Payable Cash 2. B. Determine the amount of the bond interest expense for the first year Why was the company able to issue the bonds for only $27,329,447 rather than for the face amount of $28,400,000) The market rate of interest is the contract rate of interest. Therefore, inventars wing to pay the ful face amount of the bonds