Entriles for tssuing bonds and Amorticing Premium by Stralighe-Line etho Daan Corperation wholesales repai semiannually on Aprl 1 and October oaan corporation lumaed t6,500,000 of 6-yeat % bonds at . market (aktive) Interest rate of y, reoons ash of naassa beert pantie Jourmalize the entery to recerd the issuance of bonds on Agri 1, 2016. Fer a compound transaction, if an amount bex does not require an entry, leave it bMank Fer a compou h oumalizs the ntry tocnd the fest interest payment on October 1, 20s . Why was the company able to insue the bonds for 96,814,058 rather than for the face anount of $o, 500,00 The market rate f e contract rate of nterest Issuing Bonds Premiun by Straight-Line Method Daan Corporation whiesales repair semiannually on Aprll 1 and October 1 duts to-ment manda turers. On Aprg 1, 2016, Daan Corporation issued S6 506,000 of 6-year, g% bonds at maket Ceffectie) interest rate of 7%, receiving cash of $6,814,009. Interest is payable enien on Bons Bonds Payable is alwas recorded at face value. Any difference in issue price is reflected in a premlure or distount acceunt The stralght ine methed of amortiaion prevides equal amounts of amortization over the e of the bond Journalise the entry te recond the rst ierest ayment on Octaber 1, 2016, and amortication of bond prei for six months, using the stralghtthod. The bond premium amortiation is combined with the seminual nterest payment