# Exercise 9-75 Using a Discount Amortization Table {Straight Line) Panamint Candy Company prepared the following amortization table for \$300,000 of 5-year, 9% bonds issued and sold by Panamint on January 1, 2021, for \$285,000: Period Cash Payment (Credit) Interest Expense (Debit) Discount on Hands Payable (Credit) Discount on Bonds Payable Balance Carrying Value At issue \$ 15,000 \$285,000 06/30/21 \$13,500 \$15,000 51,500 13,500 286,500 12/31/21 13,500 15,000 1,500 12,000 288,000 06/30/22 13,500 15,000 1,500 10,500 289,500 12/31/22 13.500 15,000 1,500 9,000 291,000 06/30/23 13,500 15,000 1,500 7,500 292,500 12/31/23 13,500 15,000 1,500 6,000 294,000 06/30/24 ! 3,500 15,000 1,500 4,500 295,500 12/31/24 13,500 15,000 1,500 3,000 297,000 0(5/30/25 13,500 15,000 1,500 1,500 298,500 12/31/25 13,500 15,000 1,500 0 300,000 Required: Prepare the entry to recognize the sale of the bonds on January 1, 2021. Prepare the entry to recognize the first interest payment on June 30, 2021, Determine the interest expense for these bonds that Panamint will report on its 2023 income statement. Indicate how these bonds will appear in Panamint’s December 31, 2024 balance sheet.

### Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881

### Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881

#### Solutions

Chapter 9, Problem 75E
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