Preparing a Bond Amortization Table (Straight Line)

On December 31, 2018, Distel Company borrowed \(\$ 102,700\) by issuing three-year, \(9 \%\) bonds with a face amount of \(\$ 100,000\). Interest is paid annually on December 31 . Distel uses the


straight-line amortization method.

\section*{Required:}

Prepare an amortization table using the following column headings:

\section*{Problem

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Cash Payment Period (Credit) Interest Expense (Debit) Premium on Bonds Payable (Debit) Payable Balance (Credit) Premium on Bonds Bond Payable Carrying Value (Credit)