Question

BACK NEXT Exercise 14-6 Skysong Companyse s10% bonds having a maturity value of $1,300,000 for *1,2 6,280. 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 decimal places, e g. 3.ss) Schedule of Discount Amortization Straight-Line Method Cash Paid Interest Expense Discount Amortized Carrying Amount of Bonds Year an. 1, 2017 Jan. 1, 2018 Jan. 1, 2019 an. 1, 2020 Jan. 1, 2021 Jan. 1, 2022 Question Attempts:0 of 3 used SAVE FOR LATER SUBMET ANSWER

Answer 1

Year	Cash paid	Interest expense	Discount Amortized	Carrying amount
Jan.1,2017				$1,206,280
Jan.1,2018	$130,000	$148,744	$18,744	$1,225,024
Jan.1,2019	$130,000	$148,744	$18,744	$1,243,768
Jan.1,2020	$130,000	$148,744	$18,744	$1,262,512
Jan.1,2021	$130,000	$148,744	$18,744	$1,281,256
Jan. 1,2022	$130,000	$148,744	$18,744	$1,300,000

Working notes

Discount Amortized = ($1,300,000-$1,206,280)/5

= $18,744