Entries for Issuing Bonds and Amortizing Discount by Straight Line Method On the first day of its fiscal year, Chin Company issued $25,500,000 of five year, 12% bonds to finance its operations of producing and selling home improvement products. Interest is payable semianwally. The bonds were lowed at a market (effective) interest rate of 14%, resulting in Chin receiving cash of $23.709,002 a. Journalize the entries to record the following: 1. Issuance of the bonds 2. Fint semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar) 3. 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. 2 JU III III 3. 1 eBook B Show Me How If an amount box does not require an entry, leave it blank III III III III III III b. Determine the amount of the bond interest expense for the first year. c. Why was the company able to issue the bands for only $23,709,002 rather than for the face amount of $23.500.000? The market rate of interest is the contract rate of interest. Therefore, Inventors amount of the bonds Willing to pay the full face