Martinez Company sells 9% bonds having a maturity value of $1,450,000 for $1,293,198. The bonds are dated January 1, 2017, and mature January 1, 2022. 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, 2017 |
$ |
$ |
$ |
$ 1450000 |
| Jan. 1, 2018 |
130500 |
|
232540 |
|
| Jan. 1, 2019 |
|
|
|
|
| Jan. 1, 2020 |
|
|
|
|
| Jan. 1, 2021 |
|
|
|
|
| Jan. 1, 2022 |
|
|
|