Ting on the time of as toca yomonyva 130,000,000 www.tance it po ng we willing to rement redacte. Interest wie man uit The best wat 1. of 1. Pinterest when you) HUN Honda Hai TRE III III MOM Dunas Powerpoede princescort.com. The two of the product et nonton our hear end Determine the art of the tone testere the five Why was the company is the best for the $30,000,000 The main of the Theme Entries for issuing Bonds and Amortizing Discount by Straight Line Method On the first day of its fiscal year, Chin Company issued $20,000,000 of five-year, 4% bonds to finance its operations of producing and selling home improvement products. Interest is payable semian at a market (effective interest rate of 6%, resulting in Chin receiving cash of $18,293,880 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 1.223.80 Discount on Bonds Payable Bonds Payable 20,000,000 2. Interest Expense Discount on Bonds Payable Cash 3. Interest Expense Discount on Bonds Payable Cash YOX My Wor 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 am 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 $18,293,880 rather than for the face amount of $20,000,000 The market rate of interest is greater than the contract rate of interest. Therefore, Inventors are not willing to pay the full face amount of the bonds