Presented below is a partial amortization schedule for Premium Pizza. 1. Record the bond issue assuming the

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Presented below is a partial amortization schedule for Premium Pizza.

(1) (2) Cash Paid (3) Interest (4) Decrease in (5) Carrying Value Period for Interest Expense Carrying Value Issue date $76,860 1 $2,450 $2,306 $144 76,716 2 2,450 2,301 149 76,567

1. Record the bond issue assuming the face amount of bonds payable is $70,000.

2. Record the first interest payment.

3. Explain why interest expense decreases each period.

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Financial Accounting

ISBN: 978-1259914898

5th edition

Authors: David Spiceland, Wayne M. Thomas, Don Herrmann

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Question Posted: May 16, 2020 10:42 AM

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Presented below is a partial amortization schedule for Premium Pizza. 1. Record the bond issue assuming the

Question:

(1) (2) Cash Paid (3) Interest (4) Decrease in (5) Carrying Value Period for Interest Expense Carrying Value Issue date $76,860 1 $2,450 $2,306 $144 76,716 2 2,450 2,301 149 76,567

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Financial Accounting

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