Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2016, Daan Corporation issued $2,200,000 of 7-year, 11% bonds at a market (effective) interest rate of 10%, receiving cash of $2,308,885. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, 2016. For a compound transaction, if an amount box does not require an entry, leave it blank. Cash fill in the blank 80653ef8300a049_2 2,308,885 fill in the blank 80653ef8300a049_3 Premium on Bonds Payable fill in the blank 80653ef8300a049_5 fill in the blank 80653ef8300a049_6 108,885 Bonds Payable fill in the blank 80653ef8300a049_8 fill in the blank 80653ef8300a049_9 2,200,000 Feedback b. Journalize the entry to record the first interest payment on October 1, 2016, and amortization of bond premium for six months, using the straight-line method. The bond premium amortization is combined with the semiannual interest payment. (Round to the nearest dollar.) For a compound transaction, if an amount box does not require an entry, leave it blank. Interest Expense fill in the blank 8ea731ff1fa7fde_2 fill in the blank 8ea731ff1fa7fde_3 Premium on Bonds Payable fill in the blank 8ea731ff1fa7fde_5 fill in the blank 8ea731ff1fa7fde_6 Cash fill in the blank 8ea731ff1fa7fde_8 fill in the blank 8ea731ff1fa7fde_9 Feedback c. Why was the company able to issue the bonds for $2,308,885 rather than for the face amount of $2,200,000? The market rate of interest is less than the contract rate of interest. Feedback