eBook Show Me How Entries for issuing bonds and amortizing discount by straight-line method On the first day of its fiscal year, Chin Company issued $17,500,000 of 5 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 11%, resulting in Chin receiving cash of $16,540.451. a. Journalize the entries to record the following: 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) If an amount bax does not require an entry, leave it blank Entries Account Debit Credit 16.140.453 Cash Discount on Ronds Payable Honda Payable Interest Expense Discount on Honds Payable Cash 3. Interesting Dicinton Rand Dahl b. Determine the amount of the bond interest expense for the first year. Why was the company able to issue the bonds for only $16,840,451 rather than for the face amount of $17,500,000 The market rate of interest is the contract rate of interest. Therefore, inventors face amount of the bonds willing to pay the full Check My Work 1 more Che Westemning Previous Next