You have been engaged to audit the financial statements of Ellie's Shirt Co. for the year ended December 31, 2021. The company follows IFRS. In examining the books, you became concerned with the following item: The bookkeeper made the following entry each year on December 31st to record interest expense on the bonds payable: Account Title Debit Credit Interest expense 18,000 Cash 18,000 The bonds mature in 5 years, have a face value of $300,000 and pay a stated interest rate of 6%. They were issued at a premium of $12,988 on January 1, 2020 to yield an effective interest rate of 5%. Interest is paid annually each December 31. From the correctly prepared amortization schedule, you obtain the following: Date Interest expense Amortization amount Carrying Value 1-Jan-20 31-Dec-20 31-Dec-21 15,649 15,532 2,351 2,468 312,988 310,637 308, 169 Analysis