Entries for Issuing bonds and Amortizing Premlurn by Straight-Une Method Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2016, Daan Corporation issued $8,700,000 of 8 -year, 10% bonds at a market. (effective) interest rate of 9%, recelving cash of $9,188,679. Interest is payable semiannualiy on April 1 and Qctober 1. a. Journalite 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 biank. b. Joumalize the entry to record the first interest payment on October 1,2016 , and amortization of bond premium for six months, using the straight-fine method. The bond premlum amortization is combined with the semiannubl interest payment. (Round to the nearest dollar.) For a compound transaction, if an amount box does not. require an entry, leave it blank. C. Why was the company able to issue the bonds for $9,188,679 rather than for the face amount of $8,700,000 ? The market rate of interest is the contract rate of interest