So Ive already posted this question httpswwwcheggcomhomewor

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

Solution

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