On January 1, 2017, Diagem Services issued $140,000 of four-year, 9% bonds when the market rate was 8%

The bonds were issued at $144,713. Diagem uses the effective-interest method to amortize the bond premium. Semiannual interest payments are made on June 30 and December 31 of each year. Prepare the amortization table for the first four interest payments. (Round your answers to the nearest dollar number.)

Date Cash
Paid Interest
Expense Discount
Amortized Carrying
Amount
1/1/17
6/30/17
12/31/17
6/30/18
12/31/18

What will be an ideal response

Date Cash
Paid Interest
Expense Discount
Amortized Carrying
Amount
1/1/17 $ 144,713
6/30/17 $ 6,300 $ 5,789 $ 511 144,202
12/31/17 6,300 5,768 532 143,670
6/30/18 6,300 5,747 553 143,117
12/31/18 6,300 5,725 575 142,542 .Interest Payment = $140,000 x 9% x 6/12 = $6,300
First Interest Expense = $144,713 x 8% x 6/12 = $5,789