Presented below is a partial amortization schedule for Premium Foods: $$\begin{array} { c c c c c }
( 1 ) & \begin{array} { c }
( 2 )
\end{array} & ( 3 ) & ( 4 ) & ( 5 ) \
\text { Period } & \text { Cash } & \begin{array} { c }
\text { Interest } \
\text { Paid }
\end{array} & \begin{array} { c }
\text { Decrease in } \
\text { Expense }
\end{array} & \begin{array} { c }
\text { Carrying } \
\text { Carrying Value } \
\text { Value }
\end{array} \
\text { Issue date } & & & & \$ 85,951 \
1 & \$ 2,800 & \$ 2,579 & \$ 221 & 85,730 \
2 & 2,800 & 2,572 & 228 & 85,958
\end{array}$$ 1. Record the bond issue.
2. Record the first interest payment.

Question

Presented below is a partial amortization schedule for Premium Foods: $$\begin{array} { c c c c c } 
( 1 ) & \begin{array} { c } 
( 2 )
\end{array} & ( 3 ) & ( 4 ) & ( 5 ) \
\text { Period } & \text { Cash } & \begin{array} { c } 
\text { Interest } \
\text { Paid }
\end{array} & \begin{array} { c } 
\text { Decrease in } \
\text { Expense }
\end{array} & \begin{array} { c } 
\text { Carrying } \
\text { Carrying Value } \
\text { Value }
\end{array} \
\text { Issue date } & & & & \$ 85,951 \
1 & \$ 2,800 & \$ 2,579 & \$ 221 & 85,730 \
2 & 2,800 & 2,572 & 228 & 85,958
\end{array}$$ 1. Record the bond issue.
2. Record the first interest payment.

Quizplus · Accepted Answer

The Answer of Presented below is a partial amortization schedule for Premium Foods: $$\begin{array} { c c c c c } 
( 1 ) & \begin{array} { c } 
( 2 )
\end{array} & ( 3 ) & ( 4 ) & ( 5 ) \
\text { Period } & \text { Cash } & \begin{array} { c } 
\text { Interest } \
\text { Paid }
\end{array} & \begin{array} { c } 
\text { Decrease in } \
\text { Expense }
\end{array} & \begin{array} { c } 
\text { Carrying } \
\text { Carrying Value } \
\text { Value }
\end{array} \
\text { Issue date } & & & & \$ 85,951 \
1 & \$ 2,800 & \$ 2,579 & \$ 221 & 85,730 \
2 & 2,800 & 2,572 & 228 & 85,958
\end{array}$$ 1. Record the bond issue.
2. Record the first interest payment.

Presented Below Is a Partial Amortization Schedule for Premium Foods