Bonita Company sells 9% bonds having a maturity value of $2,290,000 for $2,042,360. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1. Set up a schedule of interest expense and discount amortization under the straight-line method.

Schedule of Discount Amortization Straight-Line Method Year

Cash Paid

Interest Expense

Discount Amortized

Carrying Amount of Bonds

Jan. 1, 2020

Jan. 1, 2020

Jan. 1, 2021

Jan. 1, 2022

Jan. 1, 2023

Jan. 1, 2024