PE $14-4$B Discount amortization

Obj. $3$

Example Exercise $14-4$ Using the bond from Practice Exercise $14-3$B$,$ journalize the first interest payment and the amortization of the related bond

discount. Round to the nearest dollar. $2.$

Office on the web Frame xpense:

b$.$ Year $2$ interest expense:

$3.$

Initial carrying amount of bonds

Premium amortized on December $31,$ Year $1$

Premium amortized on June $30,$ Year $2$

Premium amortized on December $31,$ Year $2$

Carrying amount of bonds, December $31,$ Year $2$ Dec. $31$

Office on the web Fr

$31$

Year $3$

June $30$

Sept. $30$ Year $1$

Office on the web Frame ish

Dec. $31$

$31$

Year $2$

June $30$

Sept. $30$