Answer Happy

Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 2011, Strley und $9,000,000 of 4 year, 7 boods at market effective rate of 5%, receiving cash of $9,645,313. Interest is payable semiannually on April 1 and October 1 a. Journalize the entry to record the issuance of bonds on April 1, 2011. If an amount box does not require an entry, leave it blank 88 b. Journalize the entry to record the first interest payment on October 1, 207, and amortization of bond premium for six months, using the write the lead to the nearest dollar. If an amount box does not require an entry leave it bank c. Why was the company able to issue the bonds for $9,645,313 rather than for the face amount of $9,000,000? The market rate of interestis the contract rate of interest