Presented below is a partial amortization schedule for Premium Pizza.

(1)	(2)	(3)	(4)	(5)
Period	Cash Paid for Interest	Interest Expense	Decrease in Carrying Value	Carrying Value
Issue date				$62,521
1	$1,740	$1,563	$177	62,344
2	1,740	1,559	181	62,163

1. & 2. Record the bond issue and first interest payment assuming the face value of bonds payable is $58,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal Entry Worksheet

Record the issuance of bond.

Record the first interest payment.

Transaction

General Journal

Debit

Credit

1

*Enter debits before credits

Interest expense decreases each period because the carrying value of the debt issued at a premium decreases over time.

	True
	False