Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $5,400,000 of 5-year, 10% bonds at a market (effective) interest rate of 8%, receiving cash of $5,837,987. Interest is payable semiannually on April 1 and October 1.

B) Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for six months, using the straight-line method. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.