On the first day of its fiscal year, Chin Company issued $20,700,000 of five-year, 4% 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 5%, resulting in Chin Company receiving cash of $19,794,193. 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 3 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 $19,794,193 rather than for the face amount of $20,700,000? The market rate of interest is the contract rate of interest. a. Journalize 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount amortization, using the straigh answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount amortization, using the stra answer to the nearest dollar) For a compound transaction, if an amount box does not require an entry, leave it blank. 1. Accounts Payable Bonds Payable Cash Interest Expense Interest Payable Premium on Bonds Payable 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 $19,794,193 rather than for the fac the contract rate of interest. The market rate of interest is Check My Work go F3 000 000 F4 F5 DI F6 ET