On the first day of its fiscal year, Chin Company issued $$16,600,000$ of $5-$year, $4\%$ bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market $($effective$)$ interest rate of $6\%,$ resulting in Chin receiving cash of $$15,183,920.$

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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.

EntriesAccountDebitCredit

$1.$

Cash

Discount on Bonds Payable

Bonds Payable

$2.$

Interest Expense

Discount on Bonds Payable

Cash

$3.$

Interest Expense

Discount on Bonds Payable

Cash

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

fill in the blank $1$ of $1$$