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 $$3,900,000$ of $5-$year, $11\%$ bonds at a market $($effective$)$ interest rate of $8\%,$ receiving cash of $$4,374,486.$ 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.

Alpha$-$numeric input field

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 $$4,374,486$ rather than for the face amount of $$3,900,000?$

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