The following data relate to a $1,000,000, 6% bond issue for a selected semiannual interest period:

 LO3

(a) Were the bonds issued at a discount or at a premium?

(b) What is the unamortized amount of the discount or premium account at the beginning of the period?

(c) What account was debited to amortize the discount or premium?

Transcribed Image Text:

Bond carrying amount at beginning of period $1,150,000 Interest paid at end of period 30,000 Interest expense allocable to the period 28,750