On January 2, 2020, Omni Industries Inc. issued $4,000,000 of 8.5 percent, 5-year bonds when the market interest rate was 10 percent. Omni Industries pays interest annually on December 31. The issue price of the bonds was $3,772,553.

Required

Create a spreadsheet (either on paper or using software) to complete a schedule to amortize the discount on these bonds. Use the effective-interest method of amortization. Round to the nearest dollar, and format your answer as follows:

Transcribed Image Text:

B. E 1 8.5% 10% Unamortized Bond 2 Interest Interest Discount Discount Carrying Date Payment Еxpense Amortization Balance Amount Jan. 2, 2020 $227,447 $3,772,553 $[ 6. Dec. 31, 2020 7 Dec. 31, 2021 8. Dec. 31, 2022 Dec. 31, 2023 10 Dec. 31, 2024 =4,000,000*0.085 =F5*0.10 =C6-B6 =E5-D6 =F5+D6 4.