Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $13,800,000 of five year, 5% 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 7%, resulting in Chin Company receiving cash of $12,652,326, a. Journalize the entries to record the following: 1. Issuance of the bonds 2. First semiannual interest payment. The bond discount amortization, using the straight-line method, is combined with the semiannual interest payment. (Round your answer to the nearest dollar) 3. Second semiannual interest payment. The bond discount amortization, using the straight-line method, is combined with the semiannual interest payment. (Round your answer to the nearest dollar) For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar 1 Jl. II. III III 1. Issuance of the bonds 2. First semiannual interest payment. The bond discount amortization, using the straight-line method, is combined with the semiannual interest payment (Round your answer to the nearest dollar) 3, Second semiannual interest payment. The bond discount amortization, using the straight-line method, is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar II 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 bonds for only $12,652,326 rather than for the face amount of $13,800,000? The market rate of interestis the contract rate of interest