miley Corporation wholesales repair products to equipment manufacturers. On April 1, 2011, Smiley issued $5,200,000 of 10-year, 11% bonds at a market (effective) aterest rate of 8%, receiving cash of $6,260,046. Interest is payable semiannually on April 1 and October 1. . Journalize the entry to record the issuance of bonds on April 1, 2011. If an amount box does not require an entry, leave it blank. Cash 5,740,046 X Premium on Bonds Payable y Bonds Payable Feedback Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond. . Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for six months, using the straight-line method. Round the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense Premium on Bonds Payable Cash