1. Entries for Issuing A form of an interest-bearing note used by corporations to borrow on a long-term basis.Bonds and Amortizing The interest deducted from the maturity value of a note or the excess of the face amount of bonds over their issue price.Discount by Straight-Line Method

   On the first day of its fiscal year, Chin Company issued $13,100,000 of five-year, 7% 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 8%, resulting in Chin receiving cash of $12,568,684.

   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 box does not require an entry, leave it blank.

   1.	Cash Accounts Payable Bonds Payable Cash Interest Expense Interest Payable Premium on Bonds Payable	fill in the blank a3d5b1fbafaf009_2	fill in the blank a3d5b1fbafaf009_3
   	Discount on Bonds Payable Accounts Payable Bonds Payable Discount on Bonds Payable Interest Expense Interest Payable Premium on Bonds Payable	fill in the blank a3d5b1fbafaf009_5	fill in the blank a3d5b1fbafaf009_6
   	Bonds Payable Accounts Payable Bonds Payable Discount on Bonds Payable Interest Expense Interest Payable Premium on Bonds Payable	fill in the blank a3d5b1fbafaf009_8	fill in the blank a3d5b1fbafaf009_9
   2.	Interest Expense Accounts Payable Bonds Payable Discount on Bonds Payable Interest Expense Interest Payable Premium on Bonds Payable	fill in the blank a3d5b1fbafaf009_11	fill in the blank a3d5b1fbafaf009_12
   	Discount on Bonds Payable Accounts Payable Bonds Payable Discount on Bonds Payable Interest Expense Interest Payable Premium on Bonds Payable	fill in the blank a3d5b1fbafaf009_14	fill in the blank a3d5b1fbafaf009_15
   	Cash Bonds Payable Cash Discount on Bonds Payable Interest Expense Interest Payable Premium on Bonds Payable	fill in the blank a3d5b1fbafaf009_17	fill in the blank a3d5b1fbafaf009_18
   3.	Interest Expense Accounts Payable Bonds Payable Discount on Bonds Payable Interest Expense Interest Payable Premium on Bonds Payable	fill in the blank a3d5b1fbafaf009_20	fill in the blank a3d5b1fbafaf009_21
   	Discount on Bonds Payable Accounts Payable Bonds Payable Discount on Bonds Payable Interest Expense Interest Payable Premium on Bonds Payable	fill in the blank a3d5b1fbafaf009_23	fill in the blank a3d5b1fbafaf009_24
   	Cash Bonds Payable Cash Discount on Bonds Payable Interest Expense Interest Payable Premium on Bonds Payable	fill in the blank a3d5b1fbafaf009_26	fill in the blank a3d5b1fbafaf009_27