Entries for Issuing Bonds and Amortizing Premium by Straight Line Method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 201, Smiley issued $6,800,000 of 4 year, 6% bonds at a market (effective) interest rate of 4%, receiving cash of $7,298,132. Interest is payable semiannually on April 1 and October 1. a. Joumalize the entry to record the issuance of bondes on April 1, 2071. an amount bars does not require an entry leave it blank. b. Journalize the entry to record the first interest payment on October 1, 2071, and amortization of bond premium for six months, uning the straight line method. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. 99 C. Why was the company able to see the bonds for $7,298,137 rather than for the face amount of $6,800,000 The market rate of interest is the contract rate of interest