Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $4,800,000 of 7-year, 11% bonds at a market (effective) interest rate of 10%, receiving cash of $5,037,568. Interest is payable semiannually on April 1 and October 1. a. 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. =88 :88 b. 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 to the nearest dollar. If an amount box does not require an entry, leave it blank. c. Why was the company able to issue the bonds for $5,037,568 rather than for the face amount of $4,800,000? The market rate of interest is the contract rate of interest.