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E10-14 (Supplement 10A) Recording the Effects of a Discount Bond Issue and First Interest Payment and Preparing a Discount Amortization Schedule (Straight-Line Amortization) [L0 10-s1

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E10-14 (Supplement 10A) Recording the Effects of a Discount Bond Issue and First Interest Payment and Preparing a Discount Amortization Schedule (Straight-Line Amortization) [L0 10-s1 [The following information applies to the questions displayed below] On January 1, when the market interest rate was 10 percent, Seton Corporation completed a $190,000, 9 percent bond issue for $178.318. The bonds pay interest ench December 31 and mature in 10 years. Seton amortizes the bond discount using the straight-line method. E10-14 Part 3 3. Prepare a bond diccount amortization schedule for these bonds (Do eds round imel coiculation s. Round your answers to the nearest dollar.) End g Bond Liability Balances Discount on Changes During the Period interestBonds Payable Bonds Payable PeriodCesh Paid Amortized Ended Discount Expense Start Yr 1 End Yr 2 End Yr 3 End Yr 4 End Yr 5 End Yr 6 End Yr 7 End Yr 8 End

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