Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 2011, Smiley issued $18,400,000 of five-year, 8% bonds at a market (effective) interest rate of 7%, receiving cash of $19,165,153, Interest is payable semiannually on April 1 and October 1. Required: a. Journalize the entries to record the following. Refer to the Chart of Accounts for exact wording of account sites. 1. Issuance of bonds on April 1, 2011. 2. 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) b. Explain why the company was able to issue the bonds for $19,165, 153 rather than for the face amount of $18,400,000