Entries for lssuing Bonds and Amortizioy Fremium by Straight- Line Method Smiley Corporation wholesales repair products to equipment manstacturers, On April 1, 20v1, 5muley issued $6,700,000 of 4 -year, 12% bonds at a market (eflective) interest rage of 11 e. ceceiving cash of $6,912,209. Interest is payable semiannunlly on Apeit 1 and October 1. a. lournalire the entry to record the issuance of bonds on Apnt 1, 2oy1. If an amount box does not require an entry, leave it blank. b. Sournalize the entry to record the first interest payment on October 1, 20Y1, and amortizabon of bond premiuen for sox manths, using the straight-line method. Round to the nearest dollat. If an amount box does not require an entry, leave it blank. c. Why was the company able to issue the bands for 56,912,2,09 rather then for the face amount of 56,700,000 ? The market rate of interest is the contract rate of intereit