b. Determine the amount of the bond Interest expense for the first year, c. Why was the company able to issue the bonds for only $17,200,649 rather than for the face amount of $18,500,000? The market rate of interest is the contact rate of interest Show Me How Entries for issuing Bonds and Amortising Discount by Straight-Line Method On the first day of its focal year, Chin Company issued $18,500,000 of five-year, 12% 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 14%, resulting in Chin Company receiving cash of $17,200,649. - Journalise the entries to record the following: 1. Issuance of the bonds 2. First semiannual interest payment. The band discount amortization, using the straight-line method, is combined with the semiannual interest payment. (Round your 3. Second semiannual interest payment. The bond discount amortization, using the straight line method, is combined with the semiannual interest payment. (Round your Yer a compound transaction, it an amount box does not require an entry, leave it blank, Hound your answers to the nearest dollar answer to the nearest dollar) answer to the nearest dollar) 1. Cash 17.00 I. Discount on Bonds Payable Bonds Payable 2. Interest Expense Discount on Bonds Payable 123235 I. Cash 110,000 3. Interest Expense Discount on Bonds Payable 1.223 121935 Cash L1000