Smiley Corporation wholesales repair products to equipment manufacturers. On April 1 , Year 1 , Smiley issued
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Question:
Smiley Corporation wholesales repair products to equipment manufacturers. On April Year Smiley issued $ of fiveyear, bonds at a market effective interest rate of receiving cash of $ Interest is payable semiannually on April and October
Required:
a Journalize the entries to record the following. Refer to the Chart of Accounts for exact wording of account titles.
Issuance of bonds on April Year
First interest payment on October Year and amortization of bond premium for six months, using the straightline method. Round to the nearest dollar.
b Explain why the company was able to issue the bonds for $ rather than for the face amount of $
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