can some explain to in the second picture where it shows the amortization schedule why is $108,000 minus $676 shouldn't it be $108,111 minus $679 where did the $108,000 come from. Also can someone explain why the recording interest and bond amortization journal entries are what they are.

Fair Value through Net Income (FV-NI) Model: Investment in a Bond (1 of 3) When recognizing interest income separately from gains or losses, any discount or premium must be amortized before the change in fair value is recognized The investment account is kept at fair value, and the amortization information is kept in supplementary records Example: FV-NI Model - Investment in a Bond (Interest-bearing) . Assume that a company purchases $100,000, 10%, five-year bonds of Graff Corporation on January 1, 2020, with interest payable on July 1 and January 1. The bond sells for $108,111, resulting in a bond premium of $8,111 and an effective interest rate of 8%. Assume that at December 31, 2020, the fair value of the Graff Corporation bonds is $105,000. 0 LO3 18 Fair Value through Net Income (FV-NI) Model: Investment in a Bond (2 of 3) The entry to record the purchase of the bond FV-NI Investments 108,111 Cash 108,111 The amortization schedule 10% Benda Purchased to vie Cash Interest Hond Premium Received Income Amortization 343 100 1.000 300 731 Amortized Cost of Bonda SION 1 107AS 106.732 100111 HOT AS 100 100 DO $5,000 = $100,000 % 10% 6/12months $4,324 - $108,111x8%X6/12 months $676$5,000 $4,324 $107,4355108,000 $676 5.000 5.000 5.000 24 40 20 . Recording interest and bond amortization 5.000 July 1/20 Cash FV NI Tnvestments Interest Income December 31/20 Interest Receivable TV.NI Investments Interest Income 5.000 676 703 4.297