Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $28,200,000 of five-year, 7% 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 8%, resulting in Chin Company receiving cash of $27,056,250. 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. 1. Cash 27,056,250 ✔ 0 Discount on Bonds Payable 1,143,750 ✔ 0 Bonds Payable 28,200,000 2. Interest Expense ✓ 0 ✓ Discount on Bonds Payable Cash 0 ✓ ✓ 114,375 X 0 Discount on Bonds Payable 0 ✓ Cash 0 ✓ 987,000 3. Interest Expense