Printem On the first day of its fiscal year, Chin Company issued $10,000,000 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 8%, resulting in Chin Company receiving cash of $9,515 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) For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answers to the newest dollar Cash 1. 9,594415.00 Discount on Bonds Payable 405.Se Bonds Payable 10,000,000 2. Interest Expense Discount on Bonds Payable 390,559 40.559 350.000 3905 3. Interest Expense Discount on Bonds Payable 0559 Cast 350.000 Lash 40,559 350,000 3 Interest Expense v 390,559 Discount on Bonds Payable 40,559 Cash 350,000 Feedback Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The amortization over the life of the bond b. Determine the amount of the bond interest expense for the first year. $ c. Why was the company able to issue the bonds for only $9,594,415 rather than for the face amount of $10,000,000? the contract rate of interest. The market rate of interest is greater than Check My Work All work saved