On January 1, 2013, when the market interest rate was 9 percent, Seton Corporation completed a $200,000, 8 percent bond issue for $187,163. The bonds were dated January 1, 2013, pay interest each December 31, and mature in 10 years on December 31, 2022. Assume Seton Corporation uses the effective-interest method to amortize the bond discount.

1) Record the interest payment on December 31, 2013

2) Record the issuance of bonds for $187,163 with a face value of $200,000.

3) Prepare a bond discount amortization schedule for these bonds.