So I\'ve already posted this question ( https://www.chegg.com/homework-help/ques

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So I've already posted this question ( https://www.chegg.com/homework-help/questions-and-answers/entnes-tor-ssuing-bonds-amortizing-discount-straight-line-method-first-day-fiscal-year-chi-q29814701 )

and all of their answers were completely wrong, on top of that his/her answer consisted of already I already have displayed as incorrect.

Can anyone answer this right and show me how it was done, as I've been having a hard time. Thank you

Entnes tor ?ssuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $11,000,000 offive-year, 5% 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 6%, resulting in Chin Company receiving cash of $10,530,795. 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, is 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 dollar. Cash Discount on Bonds Payable 196,205X Bonds Payable 11,000,000 X 2. Interest Expense 324,621X Discount on Bonds Payable Cash 49,621 X 275,000 V 3. Interest Expense 324,621 X Discount on Bonds Payable 49,621 X Cash 275,000 v Feedback ?Check My Wbrk Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. b. Determine the amount of the bond interest expense for the first year. 9.242

Explanation / Answer

Journal entries Date Accounts title and explanation Debit $ Credit $ a. Cash Account Dr. 10530795 Discount on Bonds payable Account Dr. 469,205         Bonds payable 11,000,000 b. Interest expense Account Dr. 321920.5      Cash account (11000,000*5%*6/12) 275000       Discount on Bonds payable (469205/10) 46920.5 c. Interest expense Account Dr. 321920.5      Cash account (11000,000*5%*6/12) 275000       Discount on Bonds payable (469205/10) 46920.5 Interest expense on Bonds payable for first year Interest expense (321920.50+321920.50) 643841

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