I'm working on problem 14.02 in Intermediate Accounting 11 and trying to understand interest expense and Premium amortization. After reading the chapter, what I think I understand is to calculate the interest, I would take the beginning carrying amount of bonds x the yield rate x 6/12. Then the premium amortized column would be the cash paid minus the interest expense.

However, when using this calculation, I can not get the problem correct. What am I doing wrong? Have a missed a part of the equation?

Thanks.

(b) Your answer is partially correct. Try again. Prepare a bond amortization schedule up to and including January 1, 2023, using the effective interest method. (Round answers to 0 decimal places, e.g. 38,548.) Cash Paid Interest Expense Premium Amortization Carrying Amount of Bonds Date 1/1/19 1968727 1/1/20 185000 196873 -11873 1980599 X X 1/1/21 185000 198060 -13060 1993659 1/1/22 185000 199366 -14366 2008025 X 1/1/23 185000 200803 -15803 2023828 SHOW LIST OF ACCOUNTS