prepare the journal entry to record the payment of interest and the discount amortiz 583346

Presented below is the partial bond discount amortization schedule for Morales Corp. Morales uses the effective interest method of amortization.

Semiannual Interest Periods	Interest to Be Paid	Interest Expense to Be Recorded	Discount Amortization	Unamortized Discount	Bond Carrying Value
Issue date				$62,311	$937,689
1	$45,000	$46,884	$1,884	60,427	939,573
2	45,000	46,979	1,979	58,448	941,552

Instructions

(a) Prepare the journal entry to record the payment of interest and the discount amortization at the end of period 1.

(b) Explain why interest expense is greater than interest paid.