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Entries for issuing bonds and amortizing discount by straight$-$line method

$!$ Journal

Instructions

On January $1,$ the first day of its fiscal year, Chin Company issued $$23,100,000$ of five$-$year, $9\%$ bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market $($effective$)$ interest rate of $10\%,$ resulting in Chin Company receiving cash of $$22,208,059.$

Required:

A$.$ Journalize the entries to record the following $($refer to the Chart of Accounts for exact wording of account titles$)$:

Issuance of the bonds.

First semiannual interest payment. The bond discount amortization, using the straight$-$line method, is combined with the semiannual interest payment. $($Round your answer to the nearest dollar.$)$

Second semiannual interest payment. The bond discount amortization, using the straight$-$line method, is combined with the semtannual interest payment. $($Round your answer to the nearest dollar.$)$

B$.$ Determine the amount of the bond interest expense for the first year.

Explain why the company was able to issue the bonds for only $$22,208,059$ rather than for the face amount of $$23,100,000.$