Question: The following data relate to a $1,000,000, 6% bond issue for a selected semiannual interest period: Bond carrying amount at beginning of period . $1,150,000

The following data relate to a $1,000,000, 6% bond issue for a selected semiannual interest period:
Bond carrying amount at beginning of period . $1,150,000
Interest paid at end of period .......... 30,000
Interest expense allocable to the period ...... 28,750

(a) Were the bonds issued at a discount or at a premium?
(b) What is the unamortized amount of the discount or premium account at the beginning of the period?
(c) What account was debited to amortize the discount or premium?

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