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

On the first day of its fiscal year, Chin Company issued $29,400,000 of 5-year, 7% 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 9%, resulting in Chin receiving cash of $27,073,731.

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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	Account	Debit	Credit
1.	Accounts PayableBonds PayableCashInterest ExpensePremium on Bonds PayableCash
	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpensePremium on Bonds PayableDiscount on Bonds Payable
	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpensePremium on Bonds PayableBonds Payable
2.	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayableInterest Expense
	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayableDiscount on Bonds Payable
	Bonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash
3.	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayableInterest Expense
	Accounts PayableBonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayableDiscount on Bonds Payable
	Bonds PayableCashInterest ExpenseInterest PayablePremium on Bonds PayableCash

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b. Determine the amount of the bond interest expense for the first year. fill in the blank