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Question
Presented below is a partial amortization schedule for Premium Foods:
| (1) Period | (2) Cash Paid | (3) Interest Expense | (4) Decrease in Carrying Value | (5) Carrying Value |
| Issue date | $85,951 | |||
| 1 | $2,800 | $2,579 | $221 | 85,730 |
| 2 | 2,800 | 2,572 | 228 | 85,502 |
1. Record the bond issue.
2. Record the first interest payment.
Answer
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