Instructions Chart of Accounts Journal Final Question Instructions Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, 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 titles. 1. Issuance of bonds on April 1, Year 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 $19,165,153 rather than for the face amount of $18,400,000. actions Journal Journalize the entries. Refer to the Chart of Accounts for exact wording of account titles. JOURNAL DATE DESCRIPTION POST. REF. DENT CREDIT PAGE 10 ACCOUNTING EQUATION ASSETS LIABILITIES EQUITY Instructions Journal Final Question 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 The bonds sell for more than their face amount because the market rate of interest is bonds that pay a higher rate of interest (contract rate) than the rate they could eam on similar bonds (market rate). the contract rate of interest. Investors willing to pay more for [M