Presented below is a partial amortization schedule for Discount Pizza.

(1) Period	(2) Cash Paid for Interest	(3) Interest Expense	(4) Increase in Carrying Value	(5) Carrying Value
Issue Date				$63,948
1	$2,450	$2,558	$108	64,056
2	2,450	2,562	112	64,168

1. & 2. Record the bond issue and first interest payment assuming the face amount of bonds payable is $70,000. 3. Interest expense increases each period because the carrying value of the debt issued at a discount increases over time.