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 $4,100,000 of 6-year, 11% bonds at a market (effective interest rate of 8%, receiving cash of $4,677,183. Interest is payable semiannually on April 1 and October 1 a. Journalize the entry to record the issuance of bonds on April 1, 2071. If an amount box does not require an entry, leave it blank b. Journalize the entry to record the first interest payment on October 1, 2011, and amortization of bond premium for six months, using the straight line method Round to the nearest dolor. If an amount box does not require an entry, leave it blank. 8 c. Why was the company able to issue the bonds for 54,677,183 rather than for the face amount of $4,100,0007 the contract rate of interest The market rate of interest is