Using a Discount Amortization Table (Straight Line)

Panamint Candy Company prepared the following amortization table for $500,000 of 5-year, 9.2% bonds issued and sold by Panamint on January 1, 2025, for $466,000:

Period	Cash Payment (Credit)	Interest Expense (Debit)	Discount on Bonds Payable (Credit)	Discount on Bonds Payable Balance	Carrying Value
At issue				34,000	466,000
06/30/25	$23,000	$26,400	$3,400	30,600	469,400
12/31/25	23,000	26,400	3,400	27,200	472,800
06/30/26	23,000	26,400	3,400	23,800	476,200
12/31/26	23,000	26,400	3,400	20,400	479,600
06/30/27	23,000	26,400	3,400	17,000	483,000
12/31/27	23,000	26,400	3,400	13,600	486,400
06/30/28	23,000	26,400	3,400	10,200	489,800
12/31/28	23,000	26,400	3,400	6,800	493,200
06/30/29	23,000	26,400	3,400	3,400	496,600
12/31/29	23,000	26,400	3,400	0	500,000

Required:

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1. Prepare the entry to recognize the sale of the bonds on January 1, 2025. If an amount box does not require an entry, leave it blank.

2025 Jan. 1	Bonds PayableCashInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Bonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Bonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Record issuance of bonds at discount

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2. Prepare the entry to recognize the first interest payment on June 30, 2025. If an amount box does not require an entry, leave it blank.

2025 June 30	CashDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Bonds PayableDiscount on Bonds PayableInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Bonds PayableCashInterest ExpenseInterest PayablePremium on Bonds Payable	- Select -	- Select -
	Record interest expense

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3. Determine the interest expense for these bonds that Panamint will report on its 2027 income statement. $fill in the blank 6874c6f8800205b_1

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4. Indicate how these bonds will appear in Panamints December 31, 2028, balance sheet.

Panamint Candy Balance Sheet (partial) December 31, 2028

Bonds payable:
9.2% Bonds, due 2029Bonds PayableDiscount on Bonds PayablePremium on Bonds PayableUnamortized Premium on Bonds Payable	$- Select -
Add: Discount on Bonds PayableAdd: Premium on Bonds PayableLess: Discount on Bonds PayableLess: Premium on Bonds Payable	- Select -	$- Select -