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

On the first day of its fiscal year, Chin Company issued $$25,700,000$ of $5-$year, $12\%$ bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market $($effective$)$ interest rate of $13\%,$ resulting in Chin receiving cash of $$24,776,337.$

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.

$q,$

$x$ Discount on Bonds Payable $$

$$ Bonds Payable $$

$$

$q,$

$$

$$

$q,$

$$

$$ Premium on Bonds Payable $$

$$

$$

$$

$$

$$

$$

$$

$$

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Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight$-$line method of amortization provides equal amounts of amortization over the life of the bond.

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