Entries for Issuing gonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to equipment manufacturers. On Apni 1, 20Y1, 5mlley is5ued 56,900,000 of 8 -year, 7\% bonds at a market (effective) interest rate of 4%, recewing cast of $8,305,293. Interest is payable semiannually on Apri 1 and October 1. a. Joumalize the entry to record the issuance of bonds on Aprit 1, 20y1. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the first interest paymant on October 1, 20y1, and amortization of bond premium for six months, using the straight-line method, Round to the nesrest dollse. If an amount box does not require an entry, leave it blank. c. Wiy was the company able to isue the bonds for 16,305,293 rather than for the face amount of 46,900,000 ? The market rate of imerest is the contrect rate of interest. Entries for Issuing Bonds and Amortizing Prem Smiley Corporation wholesales repair products interest rate of 4%, receiving cash of $8,305,2 ? a. Journalize the entry to record the issuance c. Why was the company able to issue the bonds for $8,305,293 rather than for the The market rate of interest is 3 the contract rate of interest. greater than less than