Answer Happy

Larkspur, Inc. sold $2,700,000, 4%, 10-year bonds on January 1, 2022. The bonds were dated January 1 and pay interest annually on January 1. Larkspur, Inc. uses the straight-line method to amortize bond premium or discount. The bonds were sold at 104.

Prepare a bond premium amortization schedule for the first four interest periods. Annual Interest Periods Interest Expense to Be Recorded Interest to Be Paid Premium Amortization Issue date 1 $ $ $ N 3 4

Unamortized Premium Bond Carrying Value ta $