Entries for Issuing Bonds and Amortizing Discount by

Straight$-$Line Method On the first day of its fiscal year, Chin

Company issued $$16,900,000$ 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 $11\%,$ resulting in Chin receiving cash

of $$15,626,135.$ a$.$ Journalize the entries to record the following:

Issuance of the bonds. First semiannual interest payment. The bond

discount is combined with the semiannual interest payment. $($Round

your answer to the nearest dollar.$)$ 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. $1.$