Bight Corporation issued $400,000 of 5-year bonds on April 1, 2023. Interest is paid semi-annually on April 1 and October 1. Below is a partial amortization schedule for the first few years of the bond issue.

Semi-AnnualInterest Period InterestPayment Interest Expense Amortization CarryingAmount of Bonds

Apr. 1, 2023

$418,444

Oct. 1, 2023 $8,000 $6,277 $1,723 416,721

Apr. 1, 2024 8,000 6,251 1,749 414,972

Oct. 1, 2024 8,000 6,225 1,775 413,197

Apr. 1, 2025 8,000 6,198 1,802 411,395

Oct. 1, 2025 8,000 6,171 1,829 409,566

Apr. 1, 2026 8,000 6,143 1,857 407,709

Instructions

Were the bonds issued at a discount or at a premium? What is the bonds face value? What will the bonds carrying amount be at the maturity date? What will be the total interest payments over the five-year life of the bonds? Total interest expense? Prepare the journal entry to record the issuance of the bond. Prepare the journal entry for the first three interest payments. Prepare the adjusting journal entry on December 31, 2023, assuming this is Bights year end. Prepare the journal entry for the payment of interest on April 1, 2024. Assume no reversing entries have been used.

Calculate bond issue and prepare amortization schedule of a bond premium.