Entries for Issuing Bonds and Amorting Premium by straight-Une Method Smiley Corporation wholesales reper products to equipment manufacturers. On Apre 1 Year 1. S $20,811,010. Interest is payable serannually on April 1 and October 1. e sund $20,000,000 of five-year, 946 bonds at a market (effective) interest rate of receiving cash of a. Journalize the entry to record the issuance of bonds on Apre 1 YearFor compound transactio n amount box does not require an entry leave it blank 6. Journalire the entry to record the first interest payment on October 1. Yen 1. and amortization of bond premutor w months sing the white method and to the nearest dotac) For a compound ansaction of an amount box does not require an entry, leave it blank Problem #3 c. Why was the company able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000? The market rate of interest is the contract rate of interest. greater than/ less than