Entries for Issuing Bonds and Amortizing Premium by Straight$-$Line Method

cash of $$6,070,725.$ Interest is payable semiannually on April $1$ and October $1.$

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

$!$

Premium on Bonds Payable

semiannual interest payment. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

Cash

C$.$ Why was the company able to issue the bonds for $$6,070,725$ rather than for the face amount of $$5,700,000?$

The market rate of interest is less than the contract rate of interest.