Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method 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 8%, receiving cash of $20,811,010. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, Year 1. For a compound transaction, if an amount box does not require an entry, leave it blank.
b. Journalize the entry to record the 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.) For a compound transaction, if an amount box does not require an entry, leave it blank.
c. Why was the company able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000?
The market rate of interest is the contract rate of interest.

a.  Journal Entry                   Debit                Credit

    Cash                            $20,811,010

          Bonds Payable                               $20,000,000

          Premium on Bonds Payable          $811,010

     (To record the issuance of bonds on April 1)

b.   Journal Entry                             Debit         Credit

     Interest expense                     $818,899

     Premium on Bonds payable   $81,101

     (811,010/5 * 6/12)

             Cash                                                    $900,000

      (To record the first interest payment on October 1,

       Year 1, and amortization of bond premium)

c. Company can issue at price 20,811,010 instead of 20,000,000 because coupon rate of company is higher than the effective rate of interest so company is able to issue the bonds have been issued at a premium.

borrow money from the government then pay the government back 5k

answer///(d)individual rights of a person are integral to analyzing the morality of action;