Exercise 14-6

Tamarisk Company sells 8% bonds having a maturity value of $2,300,000 for $1,968,369. 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.

Schedule of Discount Amortization Straight-Line Method Carrying Amount of Bonds Discount Interest ExpenseAmortized Paid Year Jan. 1, 2017 Jan. 1, 2018 Jan. 1, 2019 Jan. 1, 2020 Jan. 1, 2021 Jan. 1, 2022 Click if you would like to Show Work for this question: Open Show Work