Refer to the information in E10-14 and assume Seton Corporation uses the effective-interest method to amortize the

Question:

Refer to the information in E10-14 and assume Seton uses the effective-interest method to amortize the bond discount.
E10-14
On January 1, 2013, when the market interest rate was 9 percent, Seton completed a $200,000, 8 percent bond issue for $187,163. The bonds were dated January 1, 2013, pay interest each December 31, and mature in 10 years on December 31, 2022. Seton amortizes the bond discount using the straight-line method.
Required:
1. Prepare the journal entry to record the bond issuance.
2. Prepare the journal entry to record the interest payment on December 31, 2013.
3. Prepare a bond discount amortization schedule for these bonds. Round calculations to the nearest dollar.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...