Presented below is the partial bond discount amortization schedule for Syam Corp., which uses the effective-interest method of amortization.

Use effective-interest method of bond amortization.

Interest Periods	Interest to Be Paid	Interest Expense to Be Recorded	Discount Amortization	Unamortized Discount	Bond Carrying Value
Issue date				$38,609	$961,391
1	$45,000	$48,070	$3,070	35,539	964,461
2	45,000	48,223	3,223	32,316	967,684

Instructions

Prepare the journal entry to record the payment of interest and the discount amortization at the end of period 1 (Points : 25)

Potential Matches:

1 : Credit $45,000

2 : Debit $48,070

3 : Credit $3,070