On January 1, when the market interest rate was 10 percent, Seton Corporation completed a $110,000, 9 percent bond issue for $103,237. The bonds pay interest each December 31 and mature in 10 years. Assume Seton Corporation uses the effective-interest method to amortize the bond discount. E10-15 (Algo) Part 1 and 2 Required: 1. & 2. Prepare 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.) 1 No [2 Date Answer is not complete. General Journal January 01 Cash Discount on Bonds Payable Bonds Payable December 31. Interest Expense Bonds Payable Cash 100 100 Debit Credit 103,237 6,763 110,000 674 On January 1, when the market interest rate was 10 percent, Seton Corporation completed a $110,000, 9 percent bond Issue for $103,237. The bonds pay interest each December 31 and mature in 10 years. Assume Seton Corporation uses the effective-interest method to amortize the bond discount. E10-15 (Algo) Part 3 3. Prepare a bond discount amortization schedule for these bonds. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) Answer is not complete. Changes During the Period Ending Bond Liability Balances Period Ended Interest Cash Paid Expense Discount Amortized Bonds Discount on Bonds Payable Carrying Value Payable Start 110,000 ( Year 1 End 103,237 6,763 110,000 Year 2 End 110,000 110,000 110,000 110,00 Year 3 End 110,000 110,000 Year 4 End 110,000 110,000 Year 5 End Year 6 End 110,000 110,000 110,000 110,000 Year 7 End 110,000 110,000 Year 8 End 110,000 110,000