On January 1, 2021, Georgetown Distributors borrowed $2,180,000 by issuing 4-year, zero coupon bonds. The face value of the bonds is $3,000,000. Georgetown uses the straight-line method to amortize any premium or discount.
Required:
Prepare an amortization table for these bonds, using the following column headings:
Period
Cash Payment (Credit)
Interest Expense (Debit)
Discount on Bonds Payable (Credit)
Discount on Bonds Payable Balance
Carrying Value