Bridgeport Corp. invested in a three-year, $100 face value 7% bond, paying $85.83. At this price, the bond will yield a 13% return. Interest is payable annually.

Assuming Bridgeport Corp. applies ASPE and has chosen to use the straight-line method of amortization, determine the amount of discount that is amortized each year. (Round answer to 2 decimal places, e.g. 52.75.)

Straight-line discount amortization $enter a dollar amount each year.

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List of Accounts

Partially correct answer iconYour answer is partially correct.

Under the above assumption, prepare journal entries to record the initial investment receipt of interest, and recognition of interest income in each of the three years, and the maturity of the bond at the end of the third year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 2 decimal places, e.g. 52.75.)

Date	Account Titles and Explanation	Debit	Credit
Day 1	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
End of Year 1	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
End of Year 2	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
End of Year 3	enter an account title to record interest collected	enter a debit amount	enter a credit amount
	enter an account title to record interest collected	enter a debit amount	enter a credit amount
	enter an account title to record interest collected	enter a debit amount	enter a credit amount
	(To record interest collected)
	enter an account title to record maturity of bond investment	enter a debit amount	enter a credit amount
	enter an account title to record maturity of bond investment	enter a debit amount	enter a credit amount
	(To record maturity of bond investment)