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 ValueIssue Date$$$$70,4801$$$1,550$$$1,410$$$14070,34021,5501,40714370,197$

$$

Required:

$1.$ & $2.$ Record the bond issue and first interest payment assuming the face amount of bonds payable is $$62,000.$

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