14-2 (Part Level Submission)

ConcordCo. is building a new hockey arena at a cost of $2,600,000. It received a downpayment of $460,000from local businesses to support the project, and now needs to borrow $2,140,000to complete the project. It therefore decides to issue $2,140,000of12%,10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield11%.

Prepare a bond amortization schedule up to and including January 1, 2020, using the effective interest method.(Round answers to 0 decimal places, e.g. 38,548.)

Date CashPaid InterestExpense PremiumAmortization CarryingAmount ofBonds

1/1/16

1/1/17

1/1/18

1/1/19

1/1/20