Entries for Issuing Bonds and Amortizing Discount by Straight$-$Line Method

On the first day of its fiscal year, Chin Company issued $$27,100,000$ of five$-$year, $5\%$ bonds to finance its operations of producing and selling home improvement prod Interest is payable semiannually. The bonds were issued at a market $($effective$)$ interest rate of $7\%,$ resulting in Chin receiving cash of $$24,846,235.$

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.

$1.$

$2.$ Interest Expense $$ Discount on Bonds Payable

$3.$