Entries for issuing bonds and amortizing premium by straight$-$line method

Smiley Corporation wholesales repair products to equipment manufacturers. On April $1,20$Y$1,$ Smiley issued $$8,800,000$ of $9-$year, $9\%$ bonds at a market $($effective$)$ interest rate of

$6\%,$ receiving cash of $$10,615,464.$ Interest is payable semiannually on April $1$ and October $1.$

a$.$ Journalize the entry to record the issuance of bonds on April $1,20$Y$1.$ If an amount box does not require an entry, leave it blank.

b$.$ Journalize the entry to record the first interest payment on October $1,20$Y$1,$ and amortization of bond premium for $6$ months, using the straight$-$line method. Round to the

nearest dollar. If an amount box does not require an entry, leave it blank.

$$

c$.$ Why was the company able to issue the bonds for $$10,615,464$ rather than for the face amount of $$8,800,000?$

The market rate of interest is

the contract rate of interest.