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Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $27,600,000 of five-year, 6% bends 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 7%, resulting in Chin receiving cash or $26,452,345. 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 semiannusl 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 ambunt hex dinsie not ranuire an antwe lasia it blank. 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 $26,452,345 rather than for the face amount of $27,600,000 ? The market rate of interest is the contract rate of interest. Therefore, inventors willing to pay the full face amaunt of the bonds: 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 $26,452,345 rather than for the face amount of $27,600,000 ? The market rate of interest 3 the contract rate of interest. Therefore, inventors Willing to pay the full face amount of the bonds: 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 526,452,345 rather than for the face amount of 527,600.000 ? The market rate of interest is the contract rate of interest. Therefore, inventor bonds. 3 willing to pary the full pace amount of the

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