Question

A)

Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $10 300,000 of five year, 10% bonds to finance its operations or producing and seling home improvement products. interest is payable semiannually. The bonds were issued at a manet (effective) interest rate of 12%, resulting in Chin receiving cash a, ss, 54,861. 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. Round your answers to the nearest dollar Cash Discount on Sonds Payable 4 Bonds Payable Interest Expense Diecount on Bends Payable y Cash . Interest Expense Discount on Bonds Payable Cash

B)

Answer 1

Date	Particulars	Debit	Credit
Jan 1, 2016	Cash	$ 9541463
	Discount on issue bonds payable	$ 758137
	Bonds Payable		$ 10,300,000
June 30, 2016	Interest Expense	$ 590813.7
	Discount on issue bonds payable		$ 75813.7
	Cash		$ 515000
December 30, 2016	Interest Expense	$ 590813.7
	Discount on issue bonds payable		$ 75813.7
	Cash		$ 515000
June 30, 2017	Interest Expense	$ 590813.7
	Discount on issue bonds payable		$ 75813.7
	Cash		$ 515000
December 30, 2017	Interest Expense	$ 590813.7
	Discount on issue bonds payable		$ 75813.7
	Cash		$ 515000