Entries for issuing bonds and amortizing premium by straight-line method Instructions Chart of Accounts Journal Final Question Instructions Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley Corporation issued $20,000,000 of five-year, 9% bonds at a market (effective) interest rate of 0%, receiving cash of $20,811,010. 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 en wording of accountilles 1. Issuance of bonds on April 1. 2. First interest payment on October 1 and amortization of bond premium for six months, using the straight-line method. The bond premium amortation is combined with the semiannual interest payment (Round to the nearest dollar) B. Explain why the company was able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000