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