Smicy Corporation wholesalcs repair products to equipment manufacturers. On April 1, 20Y1. Smicy issued $21,300,000 of five-year, 4% bonds at a market cffective interest rate of 3%,rocoving cash of 822 282.220. Interest is payable semiannually on April 1 and October 1. Required: a. Joumsilze the entries record the following. Refer to the Chest of Accounts for exeor wording of account thes. 1. Issuance or bonds on Apni 1. 20Y1. 2. First interest osyment on October 1, 2011, and amortization of oond premium for alx months, uang the straight-me method. (Round to the Final Question Joumal Joumalize the entries Refer to the Chart of Accounts for exact wording of accountries Rount to the nearest dollar 5. Explain why the company was able to issue the bords for $22,282,220 rather than for the face amount of $21,300 002 FAGE 10 The bonds sell for more than their face amount because the market rate of Interestis the contract rate of intereat. Investors Wiling to pay more for bonds that pay a higher rate of Interest contract rate; than the rate they could earn on similar bonds (market rate). JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 2