EX 14-6 Entries for issuing bonds and amortizing discount by straight-line method oBJ. 2, a On the first day of its fiscal year, Chin Company issued $10,000,000 of five-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 8%, resulting in Chin Company receiving cash of $9,594,415. a. Journalize the entries to record the following 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. Round your answer to the nearest dollar 3. Second semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. Round your answer to the nearest dollar. b. Determine the amount of the bond interest expense for the first year Explain why the company was able to issue the bonds for only $9,594,415 rather than c. for the face amount of $10,000,000. EX 14-7 Entries for issuing bonds and amortizing premium by straight-line method OBJ. 2, 3 Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley Corporation issued $20,000,000 of five-year, 9% bonds at a market effec- tive) interest rate of 8%, receiving cash of $20,811,010. Interest is payable semiannually on April 1 and October 1. Journalize the entries to record the following: Issuance of bonds on April 1 b. First interest payment on October 1 and amortization of bond premium for six months, using the straight-line method. The bond premium amortization is combined with the semiannual interest payment. Round to the nearest dollar. c. Explain why the company was able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000