Printem Book Show Me How Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $17,400,000 of five-year, 9% bonds to finance its operations of producing and selling home improvement produ Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 10%, resulting in Chin receiving cash of $16,728,149 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) If an amount box does not require an entry, leave it blank. 1. Cash 16,728,149 Discount on Bonds Payable Bonds Payable 2. Interest Expenset Discount on Bonds Payable II III III Cash 3. Interest Expense Discount on Bonds Payable Cash Fotback Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond Show Me How Printem ignment Discount on Bonds Payable ETAL Bonds Nyabile is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond Determine the amount of the bond interest expense for the first year Why was the comparable to see the bonds for only $16.928,149 rather than for the face amount of $17,400,000 The market rate of interestis the contract rate of interest. Therefore, inventors bonds willing to pay the full face amount of the ww b. Bemember that the amortization of a bond discount or premium affects the amount of interest expenses recorded. conds will be issued for either a higher or lower amount than the face value when the market and contract rates of interest are different Pure correct Check My Work Next All work saved Emal instructor Save and Exit Submit Assignment for Grading