Exercise 14-6

Skysong Company sells9% bonds having a maturity value of $2,200,000for $1,962,092. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1.

Set up a schedule of interest expense and discount amortization under the straight-line method.(Round answers to 0 decimal places, e.g. 38,548.)

Schedule of Discount Amortization

Straight-Line Method

Year Cash Paid Interest Expense Discount Amortized Carrying Amount of Bonds

Jan. 1, 2017

Jan. 1, 2018

Jan. 1, 2019

Jan. 1, 2020

Jan. 1, 2021

Jan. 1, 2022