On the first day of its fiscal year, Chin Company issued $10,100,000 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 $9,658,036.

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.)

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