Presented below is the partial bond discount amortization schedule for Bilder Corp. Bilder uses the effective-interest method of amortization.

Instructions(a) Prepare the journal entry to record the payment of interest and the discount amortization at the end of period 1.(b) Explain why interest expense is greater than interest paid.(c) Explain why interest expense will increase each period.

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Interest Expense to Be Recorded Amortization Discount Unamortized Bond Carrying Interest to Be Paid Semiannual Interest Periods Issue date 1 Discount Value $937689 $62.311 60,427 58,448 $46,884 46.979 $45.000 $1,884 1.979 939.573 941.552 2.