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 $3,700,000 of 4 -year, 12% bonds at a market (effective) interest rate of 11%, receiving cash of $3,817,190. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, 20Y1, If an amount box does not require an entry, leave it blank. Feedback r Check My Wor Bonds Payable is always recorded at foce value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. b. Joumalize the entry to record the first interest payment on October 1,201, and amortization of bond premium for six months, using the straight-line method. Round to the nearest doller. If an amount box does not require an entry, leave it blank. Feedtow T check My Work Bonds Payable is ahways recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straightline method of amottization provides equal amounts of amontization over the life of the bond. Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $26,100,000 of five-year, 11% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 12%, resulting in Chin receiving cash of $25,139,388. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest doliar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. Fevestack TCheck My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account, The straight-line method of amortization provides equal amounts of amortization over the life of the bond