! Required information [The following information applies to the questions displayed below] On January 1, when the market interest rate was 10 percent, Seton Corporation completed a $140,000, 9 percent bond issue for $131,392. The bonds pay interest each December 31 and mature in 10 years. Assume Seton Corporation uses the effective-interest method to amortize the bond discount. 3. Prepare a bond discount amortization schedule for these bonds (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) Changes During the Period Interest Discount Period Ended Cash Paid Expense Amortized Ending Bond Liability Balances Discount on Bonds Payable Bonds Payable Carrying Value Start 8,608 (8,608) Year 1 End 13,139 12,600 539 140,000 8,069 131,931 Year 2 End 13,193 12,600 593 140,000 7,476 132,524 Year 3 End 13,252 12,600 652 140,000 6,824 133,176 Year 4 End 13,317 12,600 717 140,000 6,107 133,893 Year 5 End 13,389 12,600 789 140,000 5,318 134,682 Year 6 End 13,468 12,600 868 140,000 4,450 135,550 Year 7 End 13,555 12,600 955 140,000 3,495 136,505 Year 8 End 13,650 12,600 1,050 140,000 2,445 137,555 Year 9 End 13,755 12,600 1,155 140,000 1,290 138,710 Year 10 End 12,600 1,302 140,000 0 140,000
