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Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $6,200,000 of 4-year, 6% bonds at a market (effective) interest rate of 3%, receiving cash of $6,896,190. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, 2071. If an amount box does not require an entry, leave it blank Cash Premium on Bonds Payable Bonds Payable b. Journalize the entry to record the first interest payment on October 1, 2011, and amortization of bond premium for six months, using the straight-line method. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense Premium on Bonds Payable E Cash c. Why was the company able to issue the bonds for $6,896,190 rather than for the face amount of $6,200,000? The market rate of interest is less than the contract rate of interest Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $840,000 of 15-year, 9% callable bonds on May 1, 2045, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions: 2045 May 1 Issued the bonds for cash at their face amount Nov. 1 Paid the interest on the bonds. 2049 Nov. 1 Called the bond issue at 98, the rate provided in the bond Indenture. (Omit entry for payment of interest.) If an amount box does not require an entry, leave it blank. Issued the bonds for cash at their face amount