Bond carrying amount at beginning of period $216221792
Interest paid during the period 5000000
Interest expense allocable to the period 4864990 (a) Were the bonds issued at a discount or 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? 2. Bonds Payable has a balance of $3500000 and Discount on Bonds Payable has a balance of $125000. If the issuing corporation redeems the bonds before the
maturity date at 97 is there a gain or a loss on the bond redeemption? How much of a gain or a loss?