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

market $($effective$)$ interest rate of $14\%,$ resulting in Chin receiving cash of $$21,942,449.$

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.

Cash

$$

$$

$1,657,551$

$x$

$$

$x$

Discount on Bonds Payable

$x$

Cash

Discount on Bonds Payable

$$

$$

$x$

Cash

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bond.

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 $$21,942,449$ rather than for the face amount of $$23,600,000?$

The market rate of interest is