Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smileysued $18.400,000 of five year, 12% bonds at a market offective interest rate of 10%, receiving cash of $19,820,734. Interest is payable semiannually on April 1 and October 1 Required: a. Joumalize the entries to record the following. Refer to the Chart of Accounts for exact wording of accounts 1. Issuance of bonds on April 1, Yoar 1. 2. First interest payment on October 1, Year 1, 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 $19.820,734 rather than for the face amount of $18.400,000