Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Curripany issued 523,800,000 of five-year, 11% bonds la finance is operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued el a merkel (cffective interest rate of 13%, resulting in Chin receiving cash of $22,089,152 a. Journalize the entries to record the following: 1. Issuance of the bonds 2. First somiannual interest payment. The band discount is combined with the semiannual interest payment. (Round your answer to the nearest dolar.) 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. 1. Cash Discount on Bonds Payable Bonds Payable ZUBAKIODD 2. Interest Expense din nii vid Discount on Bonds Payable Cash 3. Interest Expense Discount on Bonds Payable : Cash Fechack Check My Wik Rands Payable is always recorded at fare valur. Any difference in issuur price is reflected in a premium ar discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. b. Determine the emount of the bond interest experise for the first year. $ c. Why was the compeny able to issue the bonds for only $22,089,152 rather than for the face amount of $23,800,000? The market rate of interest is greater than the contract rate of interest. Therefore, inventors are not willing to pay the full face amount of the bonds