1/1/2020 Purchased $2,966,000 face value, 7-year, 8% municipal bonds, for $2,422,921, when the market rate of interest was 12%. Interest is paid annually on December 31 (using effective-interest method). 1/1/2020 2966000 8% Issue date face value stated rate maturity period payment frequency issue price market rate 7 1 2,422,921 12% Interest Interest Amortization Debit balance in of discount discount on bonds on bonds payable credit balance on bonds payable Book Value Date payment expense 1/1/2020 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 12/31/2026 237,280 290,750.52 237,280 297,166.98 237,280 304,353.42 237,280 312,402.23 237,280 321,416.90 237,280 331,513.33 237,280 342,821.33 1,660,960 2,200,425 543,079 53,471 489,608 59,887 429,721 67,073 362,648 75,122 287,526 84,137 203,389 94,233 109,156 105,541 3,614 539,465 why didn't it zero out? 2,966,000 2,966,000 2,966,000 2,966,000 2,966,000 2,966,000 2,966,000 2,966,000 2,422,921 2,476,392 2,536,279 2,603,352 2,678,474 2,762,611 2,856,844 2,962,386