Entries for Issuing Bonds and Amortizing. Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $28,400,000 of five-year, 10% bonds to finance its operations of producing and seling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 12%, resulting in Chin receiving cash of $26,309,604. 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 poyment. (Rhound your answer to the nearest dollae.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest doliar.) If an amount hnx does nat renuire an antru. lawn it blank. 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 $26,309,604 rather than for the face amount of $28,400,000 ? The market rate of interest is the contract rate of interest. Therefore, inventors willing to pay the full face amount of the bonds. products. Interest is payable semiannually. The a. Journalize the entries to record the followin 1. Issuance of the bonds. 2. First semiannual interest payment. The bond 3. Second semiannual interest payment. The b If an amount box does not require an entry, lea c. Why was the company able to issue the bonds for only $26, The market rate of interest is bonds. nly $26,309,604 rather than for the face amount of $28,400,000? le contract rate of interest. Therefore, inventor: willing to pay the full face amount of