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 ValueIssue Date$$$$57,4881$$$1,625$$$1,725$$$10057,58821,6251,72810357,691$

Required:

$1.$ & $2.$ Record the bond issue and first interest payment assuming the face amount of bonds payable is $$65,000.$

$3.$ Interest expense increases each period because the carrying value of the debt issued at a discount increases over time.