On January 1, 2018, Varden Incorporated issued $1,590,000 par value, 3%, 7-year bonds (i.e., there were 1,590 of $1,000 par value bonds in the issue). Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1. The issue price of the bonds based on a 4% market rate of interest is $1,493,755. Prepare the amortization table for the first 2 years, assuming Varden uses the straight-line method. (Round each calculation to the nearest whole number and then use the rounded value for each subsequent calculation in the table.)

Date Cash Interest Straight-Line Interest Discount /Premium Amortization Carrying Value

January 1, 2018

July 1, 2018

January 1, 2019

July 1, 2019

January 1, 2020