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) [LO 10-S1]

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On January 1, when the market interest rate was 8 percent, Seton Corporation completed a $280,000, 6 percent bond issue for $242,426. The bonds pay interest each December 31 and mature in 10 years. Seton amortizes the bond discount using the straight-line method.

E10-14 Part 1 and 2 1.&2. Complete the required journal entries to record the bond issuance and the first interest payment on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.) View transaction list Import a new list Record the issuance of bonds for $242,426 with a face value of $280,000. 1 2 Record the interest payment on December 31 Note: journal entry has been entered Record entry Clear entry View general journal E10-14 Part 3 3. Prepare a bond discount amortization schedule for these bonds. (Do not round intermediate calculations. Round your answers to the nearest dollar.) Changes During the Period Ending Bond Liability Balances Period Discount Amortized Interest Expense Discount on Cash Paid Bonds Payable Carrying Value Ended Start Yr 1 End Yr 2 End Yr 3 End Yr 4 End Yr 5 End Yr 6 End Yr7 End Yr 8 End Yr 9 End Yr 10 End