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Entries for issuing bonds and amortizing discount by straight-line method On the first day of...

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Entries for issuing bonds and amortizing discount by straight-line method On the first day of its fiscal yeat, Chin Company issued $25,000,000 of 5yeat,11% bonds to finance its operations of producing and seling home improvement products. Interest is payable semiannually, The bonds were issued at a market (effective) interest rate of 13%, resulting in chin recelving cash of $23,202,891. a. Journalize the entries to recond the following: 1. Tssuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannal interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semianoual interest pavment. (Round your answer to the nearest dollor.) If an amount box does not require an entry, leave it blank. b. Determine the amount of the bond interest expense for the first vear: x C. Why was the company able to issue the bonds for only $23,202,891 rather than for the face amount of $25,000,000 ? The market rate of interest is the contract rate of interest. Therefore, inventors willing to pay the full face amount of the bonds

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