Entries for issuing Bonds and Amortizing Premium by Straight-Line Method Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2016, Dean Corporation issued 57,400,000 of 10-year, 7% bonds at a market (effective interest rate of 6%, receiving cash of 87,950,455 Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, 2016. For a compound transaction, if an amount box does not reoire an entry leave it blank Cash Premium on Bonds Payable Bonds Payable 55 b. Journalce the entry to record the first interest payment on October 1, 2016. and amortization of bond premium for six months, using the straight-line method. The bond premium amortization is combined with the semiannual interest payment. Round to the nearest dollar) for a compound transaction, if an amount box does not require an entry, leave it blank Cash c. Why was the cable to issut the bonds for $7.955,465 rather than for the face amount of $7,00.000 The market rate of best less than the contract te orest