Presented below is a partial amortization schedule for Premium Pizza.

$(1)$

Period $(2)$

Cash Paid for Interest $(3)$

Interest Expense $(4)$

Decrease in Carrying Value $(5)$

Carrying Value

Issue Date $59,287$

$1$

$1,6501,482$

$16859,119$

$21,6501,47817258,947$

Required:

$1.$ & $2.$ Record the bond issue and first interest payment assuming the face amount of bonds payable is $$55,000.$

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