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

On the first day of its fiscal year, Chin Company issued $$15,000,000$ of $5-$year, $6\%$ bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The $($effective$)$ interest rate of $7\%,$ resulting in Chin receiving cash of $$14,376,255.$

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.

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b$.$ Determine the amount of the bond interest expense for the first year,

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c$.$ Why was the company able to issue the bonds for only $$14,376,255$ rather than for the face amount of $$15,000,000?$

The market rate of interest i $$ the contract rate of interest. Therefore inventors $$ willing to pay the full face amount of the bonds.