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

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.

C

Premium on Bonds Payable

Bonds Payable

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

Interest Expense Premium on Bonds Payable

J

Cash

c$.$ Why was the company able to issue the bonds for $$5,676,629$ rather than for the face amount of $$5,300,000?$

The market rate of interest is

the contract rate of interest.