last 2 blanks: (greater than, less than) (are, are not)

Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $12,400,000 of five-year, 11% bonds to finance its operations of producing and selling hement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest 12%, resulting in 11,943,617. 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 dount If an amount box does not require an entry, teave 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 $11,943,617 rather than for the face amount of $12,400,000 ? The market rate of interest is the contract rate of interest. Therefore, inventors willing to pay the full face amount of the bonds. 1. Accounts Payable Bonds Payable 2. Discount on Bonds Payable Interest Expense Interest Payable Premium on Bonds Payable 3