On the first day of its fiscal year, Chin Company issued $24,200,000 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 9%, resulting in Chin receiving cash of $22,285,180.

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

1.	Cash	fill in the blank 674edd0d8f9cf90_2	fill in the blank 674edd0d8f9cf90_3
	Discount on Bonds Payable	fill in the blank 674edd0d8f9cf90_5	fill in the blank 674edd0d8f9cf90_6
	Bonds Payable	fill in the blank 674edd0d8f9cf90_8	fill in the blank 674edd0d8f9cf90_9
2.	Interest Expense	fill in the blank 674edd0d8f9cf90_11	fill in the blank 674edd0d8f9cf90_12
	Discount on Bonds Payable	fill in the blank 674edd0d8f9cf90_14	fill in the blank 674edd0d8f9cf90_15
	Cash	fill in the blank 674edd0d8f9cf90_17	fill in the blank 674edd0d8f9cf90_18
3.	Interest Expense	fill in the blank 674edd0d8f9cf90_20	fill in the blank 674edd0d8f9cf90_21
	Discount on Bonds Payable	fill in the blank 674edd0d8f9cf90_23	fill in the blank 674edd0d8f9cf90_24
	Cash	fill in the blank 674edd0d8f9cf90_26	fill in the blank 674edd0d8f9cf90_27

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

_________?

2. Moss Co. issued $170,000 of five-year, 13% bonds, with interest payable semiannually, at a market (effective) interest rate of 12%.

Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7. Round to the nearest dollar.

_______?