Entries for Issuing bonds and amortizing discount by straight-line method On the first day of its fiscal year, Chin Company issued $23,700,000 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 $22,848,217. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First 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. Entries 1. Account Debit Credit 000 000 01 000000-0 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 $22,848,217 rather than for the face amount of $23,700,000? the contract rate of interest. Therefore, inventors The market rate of interest is i pay the full face amount of the bonds. willing to