Entries for issuing bonds and amortizing discount by straight-line method
On the first day of its fiscal year, Chin Company issued $23,100,000 of 5-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 receiving cash of $22,163,099.
Question Content Area
a. Journalize the entries to record the following:
1. Issuance of the bonds