Discount amortization under the straight-line method

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Reference no: EM131206494

Devon Harris Company sells 9% bonds having a maturity value of $2,719,000 for $2,424,968. The bonds are dated January 1, 2014, and mature January 1, 2019. Interest is payable annually on January 1.

Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to 0 decimal places, e.g. 38,548.)

Schedule of Discount Amortization

Straight-Line Method

Year

Cash

Paid

Interest

Expense

Discount

Amortized

Carrying

Amount of Bonds

Jan. 1, 2014 $

Dec. 31, 2014 $

Dec. 31, 2015

Dec. 31, 2016

Dec. 31, 2017

Dec. 31, 2018

Reference no: EM131206494

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