Riverbed Company sells 10% bonds having a maturity value of $1,400,000 for $1,299,071. 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
Cash
Year
Paid
Interest
Expense
Discount
Amortized
Carrying
Amount of Bonds
Jan. 1, 2017
1400000
$
Jan. 1, 2018
1400000
Jan. 1, 2019
1400000
Jan. 1, 2020
1400000
Jan. 1, 2021
1400000
Jan. 1, 2022
1400000