Presented below is the partial bond discount amortization schedule for Syam Corp., which 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 Bond Carrying Value $961,391 964,461 Interest to Be Paid Discount Interest Expense to Unamortized Discount Be Recorded Amortization Periods Issue date $38,609 35,539 32,316 $48,070 48,223 $45,000 $3,070 3,223 967,684