eblock Show Me How Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 2011, Smiley asued $20,000,000 of five-year, 9% bonds at a market (effective inter rate of 5, receiving cash of $20,811,010. Interest is payable semiannually on April 1 and October 1 a. Journalize the entry to recond the issuance of bonds on April 1, 2011. If an amount box does not require an entry, leave it blank. Cash Premium on Bonds Payable Boods Payable - 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 aver the life of the bend CO b. Journalize the entry to record the first interest payment on October 1, 2011, and amortization of bond premium for six months, using the straight line mehed. If an amput box does not require an entry, leave it blank Interest Expense v Premium on Bonds Payable Cash 88 Bonds Payable is always ended at face value. Any differemos in issue price is reflected in a premuro or discount account. The straight-line method of t princides equal amounts of amortization over the life of the bold