Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued 529,600,000 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 receiving cash of $28,304,740. 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 28,304,710 Discount on Bonds Payable 1,295,260 Bonds Payable 29,600,000 2. 11 III 3 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 528,304,740 rather than for the face amount of s29,600,000? The market rate of interest is the contract rate of interest. Therefore, inventors the full face amount of the bonds. willing to pay