Entries for issuing bonds and amortizing premium by straight-line method Smiley Corporation wholesales repair products to equipment manufacturers. On Apral 1, 20r1, Smiley issued $8,700,000 of 5 year, 6% bonds at a market (effective) interest rate of 5%, receiving cash of $9,080,714, Interest is payable semiannually on April 1 and October 1. a. Joumalize the entry to record the issuance of bonds on April 1, 20Y1. If an amount box does not require an entry, leave it blank. Fepdtad T Oreck Mr Won b. Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for 6 months, using the straight-line method. Round to the nearest dollar, If an amount box does not require an entry, leave it blanik. Fosthes c Oreas Uy Won c. Why was the company able to issue the bonds for $9,080,714 rather than for the face amount of $8,700,000