Entries for issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 2041, Smiley issued $7,600,000 of 6 year, 10% bonds at a market (effective interest rate of 7%, receiving cash of $8,701,620. Interest is payable semiannually on April 1 and October 1 a. Journalize the entry to record the issuance of bonds on April 1, 2071. If an amount box does not require an entry, leave it block. b. Journalize the entry to record the first interest payment on October 1, 2074, and amortization of bond premium for six months, wing the straight line method. Round to the nearest dollar of an amount box does not require an entry leave it blank c. Why was the company able to use the bonds for $8,701,620 rather than for the face amount of 5,000,000 The market note of interest the contract rate of interest