Using a Discount Amortization Table (Straight Line) Instructions Chart Of Accounts Labels and Amount Descriptions General Journal Middle Question Balance Sheet Instructions Panamint Candy Company prepared the following amortization table for $400,000 of 5-year, 6% bonds issued and sold by Panamint on January 1, 2021, for $387,000: Cash Payment (Credit) Interest Expense (Debit) Discount on Bonds Payable (Credit) Discount on Bonds Payable Balance Balance Sheet Period Carrying Value $387,000 At issue $13,000 Balance Sheet Instructions 06/30/21 $1,300 11,700 388,300 12/31/21 $13,300 13,300 13,300 1,300 389,600 Panamint Candy Company $12,000 12,000 12,000 12,000 12,000 06/30/22 1,300 10,400 9,100 7,800 390,900 Balance Sheet (Partial) 12/31/22 13,300 1,300 392,200 06/30/23 13,300 6,500 (Label) 393,500 1,300 1,300 12/31/23 5,200 394,800 1 Label) 06/30/24 12,000 12,000 12,000 13,300 13,300 13,300 1,300 396,100 12/31/24 1,300 3,900 2,600 1,300 397,400 12,000 1,300 398,700 06/30/25 12/31/25 13,300 13,300 12,000 1,300 400,000 Using a Discount Amortization Table (Straight Line) Instructions Chart Of Accounts Labels and Amount Descriptions General Journal Middle Question Balance Sheet General Journal Middle Question 1. Prepare the entry to recognize the sale of the bonds on January 1, 2021. 3. Determine the interest expense for these bonds that Panamint will report on its 2023 income statement. PAGE 1 IMPACT ON FINANCIAL STATEMENTS Interest Expenses GENERAL JOURNAL BALANCE SHEET INCOME STATEMENT DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY REVENUE EXPENSES NET INCOME 2. Prepare the entry to recognize the first interest payment on June 30, 2021. PAGE 1 GENERAL JOURNAL IMPACT ON FINANCIAL STATEMENTS BALANCE SHEET INCOME STATEMENT ACCOUNT TITLE POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY REVENUE EXPENSES NET INCOME