On the first day of its fiscal year, Chin Company issued $$15,500,000$ of five$-$year, $8\%$ 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 $9\%,$ resulting in Chin receiving cash of $$14,886,801.$

a$.$ Journalize the entries to record the following:

Issuance of the bonds.

First semiannual interest payment. The bond discount is combined with the semiannual interest payment. $($Round your answer to the nearest dollar.$)$

Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. $($Round your answer to the nearest dollar.$)$

If an amount box does not require an entry, leave it blank.

Cash

Discount on Bonds Payable $$

Bonds Payable

Discount on Bonds Payable grad

Cash

Discount on Bonds Payable

b$.$ Determine the amount of the bond interest expense for the first year.

$