Entries for Issuing$$Bonds$$and

Amortizing$$Premium$$by Straight$-$Line MethodDaan Corporation wholesales repair products to equipment

manufacturers. On April $1,2016,$ Daan Corporation issued $$3,300,000$

of $7-$year, $6\%$ bonds at a market $($effective$)$ interest rate of $5\%,$

receiving cash of $$3,492,900.$ Interest is payable semiannually on

April $1$ and October $1.$a$.$Journalize the entry to record the

issuance of bonds on April $1,2016.$ For a compound transaction, if

an amount box does not require an entry, leave it blank.b$.$Journalize the entry to record the

first interest payment on October $1,2016,$ and amortization of bond

premium for six months, using the straight$-$line method. The bond

premium amortization is combined with the semiannual interest

payment. $($Round to the nearest dollar.$)$ For a compound transaction,

if an amount box does not require an entry, leave it blank.c$.$Why was the company able to issue the

bonds for $$3,492,900$ rather than for the face amount of

$$3,300,000?$The market rate of interest is$$the contract

rate of interest.