Question
Brief Exercise 9-14 Interpret a bond amortization schedule (LO9-6) Presented below is a partial amortization schedule for Discount Pizza. (1) (2) (3) (4) (5) Period
Brief Exercise 9-14 Interpret a bond amortization schedule (LO9-6)
Presented below is a partial amortization schedule for Discount Pizza.
(1) | (2) | (3) | (4) | (5) |
Period | Cash Paid for Interest | Interest Expense | Increase in Carrying Value | Carrying Value |
Issue date | $52,072 | |||
1 | $1,995 | $2,083 | $88 | 52,160 |
2 | 1,995 | 2,086 | 91 | 52,251 |
1. & 2. Record the bond issue and first interest payment assuming the face value of bonds payable is $57,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Question:
First journal: Record the issuance of bond.
what is the discount on bonds payable?
what is cash?
Second journal: Record the first interest payment.
what is the interest expense? what is the discount on bonds payable? what is the cash amount?
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