Exercise 9-56 (Algorithmic) 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 $455,000: Cash Interest Discount Discount Carrying Period Payment Expense on Bonds on Bonds Value (Credit) (Debit) Payable Payable (Credit) Balance 45,000 455,000 6/30/13 $23,000 $27,500 $4,500 40,500 459,500 12/31/13 23,000 27,500 4,500 36,000 464,000 6/30/14 23,000 27,500 4,500 31,500 468,500 12/31/14 23,000 27,500 4,500 27,000 473,000 6/30/15 23,000 27,500 4,500 22,500 477,500 12/31/15 23,000 27,500 4,500 18,000 482,000 6/30/16 23,000 27,500 4,500 13,500 486,500 12/31/16 23,000 27,500 4,500 9,000 491,000 6/30/17 23,000 27,500 4,500 4,500 495,500 12/31/17 23,000 27,500 4,500 0 500,000 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 27500 Casho r 17500 Discount on Bonds Payable 17500 Record interest expense 3. Determine the interest expense for these bonds that Panamint will report on its 2015 income statement. $ 90000 Hide Feedback Incorrect Check My Work Feedback Calculate annual interest expense, principle x rate x time, plus the amortized discount. Hide 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: 9.2% Bonds, due 2017 9.2% Bonds, due 2017 Less: Discount on bonds payab s C Less: Discount on bonds payab