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

Instructions
Prepare the journal entry to record the payment of interest and the discount amortization at the end of period 1.

Transcribed Image Text:

Bond Value $38,609 $9,391 Interest Interest Interest to Expense toDiscount Unamortized Carrying Periods Be Paid Be Recorded Amortization Discount Issue date $45,000 45,000 $48,070 48,223 $3,070 3,223 35,539 32,316 964,461 967,684