eBook 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, Year 1, s payable semiannually on April 1 and October 1 miley corporation issued $20,000,000 of five-year, 9% bonds at a market (ffective) interest rate of 8%, receiving cash of 520,811,010. Interest is a. Journalize the entry to record the issuance of bonds on April 1, 2016 For a com pound transact on i n anoint box does not renire setndesw it ank Cash Premium on Bonds Payable V Bonds Payable ol Bonds Payable is always recorded at face value. Any diference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the lfe of the bond b. Journalize the entry to record the first interest payment on October 1, 2016, and amortization of bond prernium for six months, using the straight-line method. The bond pramium amortization is combined with the semiannual interest pavment (Round to the nearest dollar.) For a compound transaction, if an amount bux does not require an entry. lease it blank Interest Expense Premitum on Bonds Payable is reflected in premium or discount account. The st recorded face c. wh..as the company abi.tsue the bonds for20.811 The manet rate of interest is 125 PM