Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Compeny issued $27,800,000 of five-year, 10yc bends to finance its operations of producing and seling hame improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 12%, resulting in Chin receiving cash of $25,753,767. a. Journalize the entries to record the following: 1. Issuance of the bends. 2. First semiannual interest payment. The bond discount is combincd with the semionnual 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.) 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 $25,753,767 rather than for the face amount of $27,800,000 ? The market rate of interest is the contract rate of interest. Therefore, inventors walling to poy the full foce amount of the bonds