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Business, 29.11.2020 06:40 ineedtopeebeforethec

Good nights please help me Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method

On the first day of its fiscal year, Chin Company issued $28,800,000 of five-year, 12% 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 13%, resulting in Chin receiving cash of $27,764,922.

a. Journalize the entries to record the following:

Issuance of the bonds.
First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)
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
fill in the blank da7544f9b078fa8_2

fill in the blank da7544f9b078fa8_3
Discount on Bonds Payable
fill in the blank da7544f9b078fa8_5

fill in the blank da7544f9b078fa8_6

fill in the blank da7544f9b078fa8_8

fill in the blank da7544f9b078fa8_9
2.
fill in the blank da7544f9b078fa8_11

fill in the blank da7544f9b078fa8_12

fill in the blank da7544f9b078fa8_14

fill in the blank da7544f9b078fa8_15

fill in the blank da7544f9b078fa8_17

fill in the blank da7544f9b078fa8_18
3.
fill in the blank da7544f9b078fa8_20

fill in the blank da7544f9b078fa8_21

fill in the blank da7544f9b078fa8_23

fill in the blank da7544f9b078fa8_24

fill in the blank da7544f9b078fa8_26

fill in the blank da7544f9b078fa8_27

b. Determine the amount of the bond interest expense for the first year.
$
fill in the blank c1ba6af7dfee011_1

c. Why was the company able to issue the bonds for only $27,764,922 rather than for the face amount of $28,800,000?
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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