Using a Discount Amortization Table (Straight Line) Panamint Candy Company prepared the following amortization table for $500,000 of five-year, 9.2 percent bonds issued and sold by Panamint on December 31, 2012, for $465,000: Cash Interest Discount Discount Carrying Period Payment Expense on Bonds on Bonds Value (Credit) (Debit) Payable Payable (Credit) Balance 35,000 31,500 28,000 6/30/13 12/31/13 6/30/14 12/31/14 6/30/15 12/31/15 6/30/16 12/31/16 6/30/17 12/31/17 $23,000 23,000 23,000 23,000 23,000 23.000 23,000 23.000 23.000 23,000 $26,500 26,500 26,500 26,500 26,500 26,500 26,500 26,500 26,500 26,500 $3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 3,500 24,500 21,000 17,500 14,000 10,500 7,000 3,500 0 465,000 468,500 472,000 475,500 479,000 482,500 486,000 489,500 493,000 496,500 500,000 1. Prepare the entry to recognize the sale of the bonds on December 31, 2012. If an amount box does not require an entry, leave it blank. 2012 Dec. 31 Journal Account and Explanation Debit Credit Cast Discount on Bonds Payable Bonds Payable Record issuance of bonds at discount 2. Prepare the entry to recognize the first interest payment on June 30, 2013. If an amount box does not require an entry, leave it blank. 2013 June 30 interest Expense Discount on Bonds Payable Record interest expense 3. Determine the interest expense for these bonds that Panamint will report on its 2015 income statement. 4. Indicate how these bonds will appear in Panamint's December 31, 2016, balance sheet. Panamint Candy Company Balance Sheet (partial) For the Year Ended December 31, 2016 Bonds payable: 19.2% Bonds due 2017 Less: Discount on bonds payat