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Using a Discount Amortization Table (Straight Line) Panamint Candy Company prepared the following amortization table for $500,000 of 5-year, 9.2% bonds issued and sold by
Using a Discount Amortization Table (Straight Line) Panamint Candy Company prepared the following amortization table for $500,000 of 5-year, 9.2% bonds issued and sold by Panamint on January 1, 2025, for $465,000: Cash Interest Payment Expense (Credit) (Debit) Discount Discount on Bonds on Bonds Payable Payable (Credit) Balance Carrying Value Period At issue 35,000 465,000 06/30/25 $23,000 $26,500 $3,500 31,500 468,500 12/31/25 23,000 26,500 3,500 28,000 472,000 06/30/26 23,000 26,500 3,500 24,500 475,500 12/31/26 23,000 26,500 3,500 21,000 479,000 06/30/27 23,000 26,500 3,500 17,500 482,500 12/31/27 23,000 26,500 3,500 14,000 486,000 06/30/28 23,000 26,500 3,500 10,500 489,500 12/31/28 23,000 26,500 3,500 7,000 493,000 06/30/29 23,000 26,500 3,500 3,500 496,500 12/31/2 23,000 26,500 3,500 500,000 Required: 1. Prepare the entry to recognize the sale of the bonds on January 1, 2025. If an amount box does not require an entry, leave it blank. 2025 Jan. 1 Record issuance of bonds at discount 2. Prepare the entry to recognize the first interest payment on June 30, 2025. If an amount box does not require an entry, leave it blank. 2025 June 30 Record interest expense 3. Determine the interest expense for these bonds that Panamint will report on its 2027 income statement. $ 4. Indicate how these bonds will appear in Panamint's December 31, 2028, balance sheet. Panamint Candy Balance Sheet (partial) December 31, 2024 Bonds payable
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