fill out all 9 boxes along with dates and the final questions:)
Smiley Corporation wholesales repair products to equipment manulacturers. On Apeil 1, Year 1, Smiley Corporation issued $20,000,000 of five-year, 9$ bonds at a market (eflectiv5) interest rate of 8%, fecelving cash of $20,811,010. Interest is payable semiannually on April 1 and October 1. Pequired: A. Joumalize the entries to record the following. Retor to the Chart of Accounts for exatc wording of account bies. 1. Issuance of bonds on April. 1 . 2. First interest payment on October 1 and amortization of bond premum for six months, using the streight-line method. The bond premium amortization is combined with the semiannual interest payment. (Round to the nearest dollar.) 8. Explain why the company was able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000. ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 interest Revenue 121 Accounts Receivable 611 Gain on Redemption of Bonds A. 122 Allowance for Doubtful Accounts 126 Interest Receivable EXPENSES 127 Notes Receivable 510 Cost of Merchandise Sold 131 Merchandise Inventory 515 Credit Card Expense B. 141 Office Supplies 516 Cash Short and Over 142 Store Supplies 521 Sales \$alaries Expense 151 Prepaid Insurance 522 Office Salaries Expense 191 Land 531 Advertising Expense 192 Store Equipment 532 Delivery Expense 193 Accumulated Depreciation-Store Equipment 533 Repairs Expense 194 Office Equipment 534 Selling Expenses 195 Accumulated Depreciation-Office Equipment 535 Rent Expense 536 Insurance Expense LIABILITIES 537 Office Supplies Expense 210 Accounts Payable 538 Store Supplies Expense Instruct Chart of Accounts 270 Accounts Payable 538 Store Supplies Expense Smiley o 221 Salaries Payable 541 Bad Debt Expense interest 231 Sales Tax Payable 561 Depreciation Expense-Store Equipment 232 Interest Payable 562 Depreciation Expense-Office Equipment 241 Notes Payable 590 Miscellaneous Expense 251 Bonds Payable 710 Interest Expense 252 Discount on Bonds Payable 711 Loss on Redemption of Bonds 253 Premium on Bonds Payable B. EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Eamings 351 Cash Dividends 352 Stock Dividends 390 Income Summary A Joumalize the entries. Refor to the Chart of Accounts for exact wording of account thites. B. Explain why the company was able to issue the bonds for $20,811,010 nather than for the face amount of $20,000,000. The bonds sell for more than their tace amount bocause the market rase of interest is the contract rate of interest. Ifrestors bonds that pay a highec rale of interest (contract rato) than the rase they could earn on similar bonds (market rate)
