Question

can I get the solution for b and c?

Show Me How Calculator Entries for issuing Bonds and Amortizing Discount by Straight-Une Method On the first day of its fiscal year, Chin Company issued $24.900,000 of five-year, 10% 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 s i ng le company receiving cash of 123.961.556. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount amortization, using the straight-line method, is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount amortization, using the straight-line method, combined with the semiannual interest payment. (Round your answer to the nearest dollar.) For a compound transaction, if an amount box does not require an entry leave it blank. Round your answers to the nearest colar 1. Cash 23.961.556 Discount on Bonds Payable Bonds Payable 3 Bonds 2. Interest Expense Discount on Bonds Payable Cash 1.245.000 Interest Expense 1354 ✓ Discount on Bonds Payable Cash Foto Previous Next Check My Work 1 more Check My Work uses remaining Sum e nt for a

Answer 1

Solution b:

Interest expense for first year = $1,338,844 + $1,338,844 = $2,677,688

Solution c:

The market rate of interest is more than the contract rate of interest.