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 $$6,100,000$ of $8-$year, $7\%$ bonds at a market $($effective$)$ interest rate of $4\%,$ receiving cash of $$7,342,360.$ Interest is payable semiannually on April $1$ and October $1.$

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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.

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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.

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c$.$ Why was the company able to issue the bonds for $$7,342,360$ rather than for the face amount of $$6,100,000?$

The market rate of interest is

the contract rate of interest.